Precious metals continue their rally with ongoing rises in gold and silver prices during last week. At the current rate it will be no time before gold will soon pass the 1,400$/t oz. mark (providing of course this rally will continue next week…).
In total during the week of 14th to 18th February, gold and silver prices showed strength for the entire week as both metals climbed very steady.
According to Bloomberg this recent rally in gold and silver prices is related to attempts of traders and investors of hedging against inflation of goods and services in the main economies (e.g. UK and US) along with the speculation that US dollar will weaken. This analysis is based on the news regarding the rising cost of living in the US during January and the UK increase in CPI.
One thing is for sure, the rising prices of silver and gold during February nearly eliminated the falls these metals had suffered during January.
Let’s see the main changes for these precious metals prices:
Precious Metals Prices Analysis:
Gold prices have inclined by 1.72% from beginning to end of the week; this week’s average price was 1,377 USD /t. oz – a 1.3% increase compare to last week’s average weekly price of 1,360 USD /t. oz.
Silver prices, even more than gold prices, have inclined by 5.77% from beginning to end of the week, and increased by 3.8% from this week’s average price of 31.15/$/t oz., compare to 30.28$/t oz. in the previous week.
On average, gold price inclined by 0.41% on a daily basis, while silver inclined by 1.5%.
During February gold prices rose by nearly 1.7%, while silver prices increased by 5.8%.
Both silver and gold prices showed an upward trend during the week, mainly in the last couple of days 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 14th of February – the beginning of the week.
The graph clearly shows an upward trend in these precious metals.
In the final graph are the daily percent changes of silver and gold during last week.
For further reading (in this site):
- Is gold a safe heaven investment compare to S&P500
- Gold Prices Outlook for 2011 and Analysis of 2010
- Black January for gold and silver…February however looks good
Previous issues of weekly report: