Market Update

After yesterday’s bad day on the global equity markets, we basically had another red day, but this time more driven from the European continent. After we had not heard any big surprises from China from the first day of the Chinese Communist Party Congress, there was no new momentum out of Asia.

Later on Mario Draghi went in front of the press to affirm his statement of yesterday that the Eurozone economy remains at risk, but the ECB will keep the interest rates at the current levels. The Bank of England also left its interest rates unchanged. These news triggered a further sell-off in Europe and this negative momentum continued through the US market open.

The US continued to be negative on the weak treasury auction and the news out of Greece added further fuel on the fire, but precious metals continued to outperform most other markets with Gold closing at $1733.10/oz (+0.92%) and Silver closing at $32.39/oz (+1.73%).

With no significant news tomorrow and the treasury auctions over, we might see a slow recovery day on the US equity markets. We wouldn’t be surprised if there will be a technical correction in the precious metals market tomorrow or at the beginning of next week.

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