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Jobless rates are the highest since records began to be maintained in 1995. The economy has shrunk in two successive quarters. A contraction to the tune of 0.3% is expected for the next quarter.

30 Nov 2012

LONDON (Commodity Online): The euro-zone jobless rates have climbed to record highs as austerity and recession bit and clawed: 11.7% is the unemployment rate for October compared to 11.6% in September. The markets seem to have already priced this in even as bullion appreciated a bit.

“The trend remains a gradual upward trend before we can hope for some stabilization in the second half of next year,” said Frederik Ducrozet, senior euro-area economist at Credit Agricole in Paris to Bloomberg. “There’s no escaping the fact the unemployment rate will rise again in the next year; it’s a lagging indicator.”

The data is the highest since records began to be maintained in 1995. The economy has shrunk in two successive quarters. A contraction to the tune of 0.3% is expected for the next quarter.

At least 18.7 million people are unemployed in the currency bloc as companies have turned to job cutting and investment freezing.

At 26.2% Spain had the highest of the jobless rate followed by Portugal, Ireland, France and Austria. Greece had 25.4% unemployment rate in August.

Meanwhile, gold prices on the Comex climbed by a small margin reacting to the news. Market's majority had already priced this in. Gold for February delivery was seen trading at $1730.65/oz a gain of 0.07% as of 4.20 pm IST.

Silver on the Comex is down by 0.32% and was seen at $34.32 an ounce. Gold and silver are in red in Indian markets.


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