Precious metals changed course and plunged at the beginning of the week only to slightly recovery by the end of the week following the rise in tension between Russia and US. The Malaysian airliner plane was shot down over Ukraine; President Obama blamed Russia for it and said he is willing to tighten sanctions on Russia. This news may have been the trigger to pull back up gold and silver prices. Earlier this week, Chair Yellen testified at the Senate. Her testimony didn’t provide much information regarding the FOMC’s future policy. She did, however, refer to the potential bubble in the biotech and social media markets, which could imply she is preparing the ground work for a rate hike in the near term. But this is again only speculations. This week’s number of jobless claims only fell by 3K to reach 302K. In other U.S news, the Philly fed index rose again to 23.9 in July – its highest level since 2011. These reports, however, didn’t have much of in impact on the financial markets as the news from Ukraine crowded out these reports’ headlines. By the end of the week, gold fell by 2.1% and silver by 1.58%.
Here is a short overview for the week of July 14th to July 18th:
The price of silver also fell by 2.7%; further, the average weekly rate was $20.89/t oz, which was 1.40% below last week’s rate $21.19/t oz.
During last week, the average daily percent changes of gold were -0.415%; silver had an average daily change of -0.536%.
The chart below showed thechanges inprecious metals prices, in which they are normalized to 100 as of July 11th. Gold and silver tumbled down mainly at the beginning of last 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 rose mainly on Thursday. The daily percent shifts ranged between 1.73% and -2.55%.