The fall and rise of gold & silver | weekly recap 22-26 August

Gold and silver prices changed direction and fell very sharply mainly on Tuesday and Wednesday; these falls were probably stem by the recent margin hike by CME for trading gold, and the change in direction of the anticipation of Bernanke to issue another QE program. Chairman of the Fed didn’t commit to any future programs or stimulus plans, but also didn’t completely take it off the table. Some of the rally in the stock markets probably also helped the bullion market to lose ground during last week.

Here is a short review of the changes in gold and silver prices during the week of August 22nd to August 26th 2011:   

 Precious Metals Prices weekly summary:

 

table Current gold prices and silver prices - 22-26 August 2011

Gold price decreased by 5% during the week; furthermore, last week’s average gold price of $1,814 /t. oz slightly inclined  by 0.67% from the previous week’s average price of $1,802 /t. oz. Gold price finished the week at $1,797.3 /t. oz.

Silver price followed gold price and also declined by 5.45% from beginning to end, but this week’s average price was $41.34/t oz or 1.95% above the previous week’s average $40.55/t oz.

During the week, the average daily percent change of gold price fell by   0.56%; silver price also declined by 0.62%.

In the chart below are the silver and gold prices that were normalized to 100 to the price at the beginning of the week – August 22nd. It shows the weekly trend of gold and silver prices.

current gold prices and silver prices chart 22-26 August 2011

In the chart above gold and silver prices had a sharp downward trend during the first half of the week that reached a weekly low on Wednesday; afterwards, gold and silver prices changed direction and picked up again during the second half of the week.

 

current gold prices and silver prices chart 22-26 August 2011 percent change

The last chart is of the daily percent changes of silver and gold prices during last week (or in other words the price changes around the trend). It shows that gold and silver prices started off the week with moderate rises; on Wednesday they had a very sharp fall that followed with sharp gains on Thursday, mainly silver price.  By the end of the week they finished with moderate gains.

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