Precious metals prices continued their rally and hiked mainly on Thursday following the publication of the FOMC decision to commence with QE3 that will include the Fed buying mortgage backed securities at a pace of $40 billion per month. There were several other reports that were published during last week, such as U.S Consumer Price Index that showed a rise of 0.6% in August and U.S PPI that also hiked by 1.7%.
During the week the Euro/USD also increased by 2.43%; further, other “risk currencies” also appreciated against the USD, e.g the Aussie dollar by 1.6%. Thus, the rally of Euro seems to have contributed to the rally of precious metals rates.
By the end of the week, gold rose by 1.85% and silver by 2.87%.
Here is a short recap of the changes in Bullion between September 10th and September 14th:
Precious Metals Recap:
Gold price increased during last week by 1.85%; further, during said time the average rate reached $1,749.04 /t. oz which is 2.6% above the previous week’s average rate of $1,704.74 /t. oz. Gold finished at $1,772.7 /t. oz.
Silver, even much like gold, rose on a weekly scale by 2.87%; further, the average rate increased by 4.54% to reach $33.99/t oz compared to the previous week’s average $32.51/t oz.
During last week, the average daily percent change of gold reached 0.37%; silver rose by an average 0.59%.
As seen below, the chart shows the changes of precious metals, as their rates normalized to 100 to September 7th. Bullion prices didn’t do much during most of the week except of Thursday following the FOMC decision.
The second chart shows the daily percent developments of precious metals (or in other words the changes around the trend). Silver and gold hiked on Thursday following the FOMC decision but the next day they didn’t do much. During last week precious metals daily percent changes ranged between nearly 4.5% gain and -0.82% loss.
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