The raising of interest rates in Australia was a reminder to Gold traders that we are may see a raft of interest rates increases over the coming months, which may add some downward pressure on the price of gold. Looking to the short term, the next psychological barrier is the $1200 level, which is back on the horizon. The Asian markets may be quiet, as we have Golden Week holidays, but there is plenty of economic data to ensure that it is another busy week.
Gold & Silver
- Chancellor Merkel's Cabinet approved legislation to give Greece E22.4bn of aid over three years
- The Reserve Bank of Australia raised their interest rates by 25 basis points to 4.5% last night, in line with expectations
- Currency traders should note that there is a raft of data this week. Euro watchers should note that the ECB are scheduled to announce their Interest Rate decision on Thursday, Sterling traders should note that the UK election will be held on Thursday, and USD watchers should be aware that non-farm payroll figures are scheduled to be released on Friday