The bullion market changed direction during the week as both gold and silver rallied at the beginning of the week only to plummet at the end of the week. At the beginning of the week commodities prices rallied perhaps on account of last week’s China’s manufacturing PMI, in which the index rose to 50.8 in May. In Europe, ECB and BOE left the interest rate unchanged. This news may have contributed to the rally of not only the Euro but also precious metals prices. By the end of the week, U.S employment report came out: 175k jobs were added in May, which is slightly better than many had expected. This news pulled down precious metals prices and positively affected equities and energy commodities. In the U.S, jobless claims slipped by 11k to reach 346k. By the end of the week, the Euro sharply rose by 1.68% while the Aussie dollar slipped by 0.77% against the USD. Gold price declined by 0.68%; silver, by 2.18%.
Here is a short review of the changes in precious metals prices between June 3rd and June 7th:
Precious Metals Recap:
Gold price slipped during last week by 0.68%; conversely, during the week, the average weekly price reached $1,401.24 /t. oz which was 0.65% below last week’s average rate of $1,392.18 /t. oz. Gold ended the week at $1,383.1 /t. oz.
Silver, even more than gold, decreased during last week by 2.18%; on the other hand, the average weekly rate was $22.41/t oz, which was only 0.05% below last week’s rate $22.40/t oz.
During the previous week, the average daily percent changes of gold reached -0.127%; silver had an average daily change of -0.415%.
The chart below shows the developments of precious metals, as their prices are normalized to 100 as of May 31st. Gold and silver prices rallied during the beginning of the week only to tumble down at the end of last week.
The second chart presents the daily percent changes of bullion prices (or in other words the changes around the trend). Silver and gold changed direction nearly on a daily basis during the week. Precious metals prices daily percent changes ranged between 2.2% gain and 4.3% drop.