The prices silver and gold didn’t do much yesterday again even though there were sharp falls in other commodities markets most notably the drop in oil prices. According to the recent HSBC’s flash manufacturing PMI of China declined to 47.8 which mean the manufacturing sector is contracting at a faster pace in China. This new may adversely affect commodities rates during the day. On today’s agenda: Philly Fed Manufacturing PMI reports, Philly Fed Manufacturing survey, ECB President Speech, GB Retails Sales, Spanish 10 Year Bond Auction, U.S. Jobless Claims update, FOMC member Lockhart’s Speech.

The Euro/USD remained unchanged on Wednesday at 1.3048. Several other currencies including AUD appreciated against the USD. As seen in the chart below linear correlation among gold, CAD, AUD, and Euro are still mid-strong: during the month, the correlation between gold and EURO/USD was 0.6 (daily percent changes); the correlation between gold and Canadian dollar, -0.72; the correlation between gold and Aussie dollar, 0.63. If the Euro, CAD and AUD will trade down, this could also pull down along with it the prices of bullion.

Source: dailyfx