Gold and silver declined again yesterday for the second straight day following theongoing development from Europe that produce news on an hourly basis. Today, China's new loans report will be published along with China's M2 report, Great Britain PPI and UoM U.S. consumer confidence report will become available.

Gold sharply declined on Thursday by 1.79% to $1,759.6; silver also declined by 0.74% to $34.11. During the month, gold increased by 2.0% while silver slightly declined by 0.7%.

The ratio between gold and silver slightly slipped on Thursday, November 10th to 51.59. During November, gold rose by a higher rate than silver so that the ratio inclined by 2.7%.

The European Debt Crisis Update November 11th

The recent news for Italy was that European Central Bankstarted to purchase Italian bonds. This news stabilized the markets yesterday as theEuro moderately inclined against the USD and Italy's 10 year bond yields slightly declined.

Italy’s senate is set to vote today, November 11th on a package of debt-reduction measures to clear the way for forming a new government. This move may further help stabilize the European financial markets.

For more on the European Debt Crisis news updates see here.

S&P500 / Gold & Silver– November

The S&P500 slightly inclined on Thursday by 0.86% to reach 1,239.70, and during November the S&P500 slipped by 1.09%. During the months, the correlations among the S&P500 and gold and silver were strong and positive (as seen in the chart below): these findings might suggest that precious metals are less associated with safe haven instruments such as U.S. treasuries as they did in the past. If the stock markets will continue to decline, this may also pressure gold and silver to drop.

Gold and Silver Outlook:

Gold and silver declined for two consecutive days including a sharp fall for gold price yesterday. The forex market made correction as the Euro, AUD and CHF bounced back against the USD following the news from Greece and Italy; this correction didn't reach gold and silver prices but might take place today if the Euro and AUD will continue to rise. Thereports in Bloomberg of hedge funds being bullish on gold may help rally gold today and correct for its recent decline. Silver will probably soon follow gold and incline as well.

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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.

By: Lior Cohen, Energy Analyst forTrading NRG