Gold and silver prices recorded one of their worst weeks in the past months. Both precious metals prices didn’t decline by such a sharp rate since the penultimate week of September – back when the CME raised the margins on gold and silver contracts. This time, the sharp drop came on Wednesday, December 14th following the disappointment of many traders from the FOMC meeting in which there were no announcement of another stimulus plan that would have raised the money base of the U.S. and thus further pressuring up the price of gold and silver. The positive reports on the progress of the U.S. economy including the Philly Fed index and the gains in the U.S. PPI may have helped rally the precious metals prices mainly silver price by the end of the week.
Here is a short review of the changes in gold and silver prices during the week of December 12th to December 16th 2011:
Precious Metals Prices Weekly Summary:
Gold price sharply dropped during the week by 4.21%; furthermore, during last week’s average gold price of $1,618 /t. oz was 6.34% below than the previous week’s average price of $1,728 /t. oz. Gold price finished the week at $1,597 /t. oz.
Silver price, much like gold price, sharply declined during the week by 4.29%, and this week’s average price reached 30.03/t oz which is 7.05% below the previous week’s average $32.31/t oz.
During the week, the average daily percent change of gold price decreased by 1.40%; silver price also declined by an average daily rate of 1.59%.
In the following chart are the silver and gold prices that were normalized to 100 to the beginning of the week – December 12th. The chart shows the sharp drop of gold and silver prices on Wednesday.
The final chart presents the daily percent changes of silver and gold prices (or in other words the price changes around the trend). It shows the declines of gold and silver prices on Monday and even to a higher rate on Wednesday; that being said, silver price rose during the rest of the week, while gold price increased only on Friday.
- Gold and Silver Prices Weekly Outlook for December 12-16
- Gold and Silver Prices Monthly Outlook for December 2011
Previous issues of weekly report: