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:
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.
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.
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.
For further reading:
Previous issues of weekly report:
- The gold & silver rush | gold & silver weekly recap 15-19 August
- The Ecstasy of gold | gold & silver weekly recap 8-12 August
- The rise & fall of silver | gold and silver weekly recap 1-5 August