Last week brought along with it many news items that resulted in the strengthening of the US dollar against the Euro, Aussie dollar and Canadian dollar. The prices of gold and silver moved in the same direction and tumbled down mainly on Friday. In the U.S the NF payroll report came out and was better than anticipated: 204k jobs were added during the month of October, which is even more impressive considering the government shutdown, which, according to some estimates, resulted in 130k jobs lost. This news rekindled the speculations around the Fed’s next move and the progress of the U.S economy. Moreover, the US GDP expanded by 2.8% during Q3, which was also better than expected. These factors may have contributed to the fall of gold and silver prices during Friday. The other big headline was the ECB’s decision to cut its cash rate to its lowest level of 0.25%; this news pulled down commodities prices and rallied the US dollar against the Euro. In other news, jobless claims fell by 9k to 336k. By the end of the week, gold price decreased by 2.19% and silver by 2.38%.
Here is a short overview of the recent developments in precious metals prices between November 4th and November 8th:
Precious Metals Recap:
The price of gold fell by 2.19% last week; further, during the previous week, the average price reached $1,306.70 /t. oz which was 2.24% below last week’s average rate of $1,336.64 /t. oz. Gold ended the week at $1,284.50 /t. oz.
The price of silver, just like gold, declined by 2.38%; moreover, the average weekly rate was $21.61/t oz, which was 3.18% below last week’s rate $22.32/t oz.
During last week, the average daily percent changes of gold were -0.437%; silver had an average daily change of -0.479%.
The chart below presents the changes in precious metals prices, in which they are normalized to 100 as of November 1st. Gold and silver prices didn’t do much during the first part of the week only to tumble down by the end of the week.
The second chart shows the daily percent changes of precious metals prices (or in other words the changes around the trend). Silver and gold fell in the past couple of days of the week. Gold and silver prices daily percent changes ranged between 0.73% gain and 1.8% decline.