Precious metals prices resumed their rally as bullion traders were waken from their recent slumber after the minutes of the FOMC had revealed the Fed is leaning towards issuing another QE program in the near future. On Thursday both gold and silver hiked. There were several other reports that were published during the week, such as the new home sales figures in the U.S, but none of them seem to have a substantial impact on precious metals.
During the week the Euro/USD increased by 1.44%; on the other hand, other “risk currencies” slightly depreciated against the USD such as the Aussie dollar by 0.14%. Nonetheless, the rally of Euro seems to have contributed to the rise in bullion rates.
By the end of the week, gold hiked by 3.3% and silver by 9.34%.
Here is a short recap of the changes in Bullion between August 20th and August 24th:
Precious Metals Recap:
Gold price rose during last week by 3.3%; further, during said time the average rate reached $1,650.42 /t. oz which is 2.38% above the previous week’s average rate of $1,611.98 /t. oz. Gold finished at $1,619.4 /t. oz.
Silver, even more than gold, rose on a weekly scale by 9.34%; further, the average rate increased by 6.5% to reach $29.82/t oz compared to the previous week’s average $28.00/t oz.
During last week, the average daily percent change of gold reached -0.66%; silver increased by an average 1.81%.
As seen below, the chart shows the changes of precious metals, as their rates normalized to 100 to August 17th. Bullion prices had a clear upward trend during the week.
The second chart shows the daily percent changes of precious metals (or in other words the changes around the trend). Silver and gold hiked on Thursday following the publication of the minutes of the FOMC meeting. During last week precious metals daily percent changes ranged between nearly 3% gain and 0.15% loss.
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