During the week of January 24th to 28th gold and silver showed weakness for most of the week, only to bounce back on Friday. Let’s see the main changes for these precious metals prices:
The recent rally some for gold and silver, Bloomberg consider it pertaining to the current turmoil in the Middle East. On this subject, the riots in Egypt subsided, as President Hosni Mubarak issued a curfew, while he fled from Cairo to his home in Sharm el-Sheikh in Sinai.
As the level of uncertainty in the Middle East rises, it might continue to raise main energy prices but also other major commodities including gold and silver prices; Nonetheless, next week it will become clearer if this recent rise in major commodities is related to the Egyptian riots, if, of course the riots will continue; See here the complete story on the Egyptian riots and its effect on crude oil price.
Current gold prices have declined by 0.21% from beginning to end of the week; this week’s average price was 1,334 USD /t. oz – a 1.6% decrease compare to last week’s average weekly price of 1,356 USD /t. oz.
Silver prices, unlike gold prices, have inclined by 2.19% from beginning to end of the week, however decreased by 3.2% from this week’s average price of 27.24$/t oz., compare to 28.15$/t oz. in the previous week.
On average, gold price inclined by 0.02% on a daily basis, while silver inclined by 0.37%.
In total, gold prices fell by nearly 5.7% during the month of January, while silver prices decreased by 10.3%.
These figures show that silver prices were on a downward trend for most of the week, and only at the end of the week bounced back by 3.3%. Gold prices, on the other hand, changed in a similar way, but only much more moderately. As a result, current gold prices finished the week at near similar price to the beginning of the week.
In the following table I present a summary of last week’s descriptive stats of gold and silver prices:
The price of silver and price of gold chart below presents the following: the price of each commodity is normalized to 100 for the price as of 24th of January – the beginning of the week.
The graph clearly shows a downward trend in these precious metals for up to Friday, when prices bounced back.
In the final graph are the daily percent changes of silver and gold during last week. According to the graph silver prices fluctuated between 3.3% and -1.9%, while gold price changed between 1.7% and -1.1%, both showing higher volatility than last week.
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