Are gold and silver making a comeback? Investors of precious metals saw metals recovering for the third week in a row. This time, the FOMC meeting concluded with little movement in the bullion market. The next day, in a late reaction, gold and silver jumped to reach their highest levels in the past couple of months. The main issues were the slightly dovish overtones of Yellen and the FOMC’s statement, which were enough to drag down the USD. Even the rise in core CPI to 2% didn’t impressed Chair Yellen. Also, the revised down economic guidance of the U.S economy was enough to help rally gold and silver. The last few economic reports showed a mixed trend regarding the progress of the US: Jobless claims fell by 6K to 312K; Philly Fed index slightly increased from 15.4 in May to 17.8 in June; housing starts declined by 6.5% in May. During last week, gold price rose by 3.3%; silver, by 6.6%.
Here is a short overview for the week of June 16th to 20th:
The price of silver, much more than gold, spiked by 6.58%; further, the average weekly rate was $20.16/t oz, which was 4.38% above last week’s rate $20.95/t oz.
During last week, the average daily percent shifts of gold were 0.343%; silver had an average daily change of 0.692%.
The chart below shows thechanges inprecious metals prices, in which they are normalized to 100 as of June 13th. Gold and silver recovered again mainly at the end of last week.
The second chart presents the daily percent developments of precious metals prices(or in other words the changes around the trend). Silver and gold rallied mainly on Thursday. The daily percent shifts ranged between 4.4% and -0.3%.