Gold and silver moved in an unclear trend during last week as they have shifted from gains to losses almost on a daily basis. The week kicked off with the whole Cyprus bailout plan. The recent news from this front is that Cyprus is still struggling to receive the EU bailout fund. This development may have contributed to the rise in demand for safe haven investments and also pulled down the Euro. The FOMC meeting, which was another big event this week, didn’t result in big headlines and thus didn’t affect the prices of precious metals. In the U.S several reports came out and some showed signs of growth in the economy: during March the Philly fed index rallied from its negative figure back in February; the housing starts and building permits rose during February. On the other hand, jobless claims slightly rose during last week. During last week, the Euro/USD currencies pair declined; other leading currencies also such as the Aussie dollar and Yen appreciated against the USD. This mixed trend in the forex market may have contributed to the mixed trend in the precious metals markets. By the end of the week, the Euro/USD declined by 0.67%; the Aussie dollar appreciated by 0.34% against the USD. Finally, gold rose by 0.85%; silver slipped by 0.54%.
Here is a short recap of the changes in precious metals prices between March 18th and March 22nd:
Precious Metals Recap:
Gold price increased during last week by 0.85%; moreover, during said week, the average rate reached $1,608.66 /t. oz which was 1.28% above last week’s average rate of $1,588.28 /t. oz. Gold ended the week at $1,606.1 /t. oz.
Silver, unlike gold, declined during last week by 0.54%; further, the average rate edged down by 0.14% to reach $28.86/t oz compared to last week’s average $28.9/t oz.
During last week, the average daily percent changes of gold reached 0.17%; silver had an average daily changed of -0.103%.
The chart below shows the developments of precious metals, as their rates are normalized to 100 as of March 15th. Gold and silver prices have had an unclear trend during the previous weeks.
The second chart shows the daily percent shifts of precious metals (or in other words the changes around the trend). Silver and gold were little changed during last week. Precious metals rates daily percent changes ranged between nearly 1.5% gain and 1.7% drop.