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Commodities Brief: Gold to fresh 10-month lows sub $1550

FXstreet.com (Barcelona) - Gold is currently trading at fresh 10-month lows $1542 in the spot market, catching up with latest Silver selling off, and back to its natural inverse correlation with USD. The precious metal is down -3.2% for the week so far, one of the worst weeks in last months. Gold-Silver ratio jumped yesterday to fresh 8-month highs shy of the 59 mark, but it has eased today to 57.7 as Gold played catch up with Silver.

As a leading indicator for inflation, Gold is just showing the way to what today's CPI figures confirmed in the EU: another consecutive lower figure since late 2011, last at 1.7% year on year, coming from a peak at 3% by Sept 2011. At the same time, US 10 year note yield lost the 1.8% level for first time this year, on the back of fly to safety funds given poor data in the US jobs market, showing worst ADP figure this year, along with ISM-Non manufacturing PMI.

While silver lost the $27 figure for first time since late July in the spot market, Oil also had a massive run lower losing -2.48% at the NY close, on the back of increasing crude oil reserves, being more than expected. Poor data coming from China lately as well, or at least worse than expected, is not helping Oil either, as now China is main importer of the world for oil.

Commodities over all did not have its best day today either, with Copper falling -1.30% by the NY close and Iron ore back to the $136 level, and the CRB index down -1.3% as well, though some soft commodities such as Wheat pushed higher +3.5%, or Coffee +2.58%.

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