lior

Precious metals took another dive during the first week of July. This fall coincided with the decline in many other financial markets such as oil, U.S stocks etc. The two main events of the week that contributed to fall of bullion rates were the ECB rate decision on Thursday and the U.S employment report. ECB has decided to cut the interest rate by 0.25pp to 0.75% - its lowest rate level. This news adversely affected not only the Euro/USD but also other markets such as stocks and commodities. The following day the U.S non-farm payroll report came out. This time many had anticipated the report will be positive and show a high growth in employment compared to recent months (at least 120k+) but this wasn't the case. Employment expanded by only 80k. This news tends to be negatively correlated with bullion, but this time it adversely affected gold and silver. This may be due to the shift in market sentiment about the possibility of another QE program in the near future. Further, the Euro/USD also declined on Friday and may have also contributed to the decline in major commodities rates including gold, silver and oil.
The complete gold and silver weekly recap analysis