The gold and silver market has cooled down last week: The price of gold fell by 5.61%; silver plummeted by 9.10%. In anticipation for next week’s FOMC meeting, the market may have adjusted to the possibility that the Fed won’t start tapering QE3 in September. Until then, the progress of U.S economy will continue to affect bullion market. Last week, the retail sales inched up by only 0.2% during August. This may have contributed to the fall of gold and silver on Friday. The U.S federal budget showed a rise in deficit by $147 billion; jobless claims sharply fell by 31k to reach 292k. In India, the demand is slowing down in the past couple of months, even though the demand rose in the first half of 2013.
Here is a short review of the latest developments in precious metals prices between September 9th and September 13th:
Precious Metals Recap:
The price of gold tumbled down by 5.61% last week; further, during the previous week, the average price reached $1,350.46 /t. oz which was 2.93% below last week’s average rate of $1,390.03 /t. oz. Gold ended the week at $1,308.4 /t. oz.
During the previous week, the price of silver, even more than gold, plummeted by 9.10%; moreover, the average weekly rate was $22.72/t oz, which was 4.01% above last week’s rate $23.71/t oz.
During last week, the average daily percent changes of gold were -1.144%; silver had an average daily change of -1.875%.
The chart below shows the developments in precious metals rates, in which they are normalized to 100 as of September 6th. Gold and silver prices plummeted during the week.
The second chart presents the daily percent shifts of precious metals prices (or in other words the shifts around the trend). Silver and gold sharply fell during the week. Precious metals prices daily percent changes ranged between 0.7% gain and 4.4% drop.