Here is your weekly recap of the changes in gold spot price and silver prices for the week of December 13th to 17th:
This passing week precious metals showed they could decline even if people still consider them a safe haven for their investments; despite sharp rises at the beginning of the week, gold and silver finish the week lower than they had started off.
At the end of the week, the gold prices fell by 1.3% compare to the beginning of the week; this week’s average price was 1,389 USD /t. oz – a 0.5% drop compare to last week’s average weekly price of 1,397 USD /t. oz.
In regards to silver price, things are a bit different as it fell by 1.6% from the beginning to the end of the week, but, unlike Gold, rose by 1.2% from this week’s average weekly price of 29.38$/t oz., compare to 29.04$/t oz.
On average, gold prices declined by 0.1% on a daily basis, while Silver prices fell by 0.4%.
In the following table I present a summary of last week’s descriptive stats of spot gold prices and silver prices:
*This figure is calculated based on the percent change from the price at the beginning of the week compare to the price at the end of the week
Analysis:
There are some economic considerations for the price increases in the past several years, as the world demand for Gold during 2010 compared to 2009 . OK, so even given the rise in demand for gold which is mainly originates in India and China, this means that most of the rise is still due to investors speculate about gold prices continue to rise and that gold will prove to be a good investment.
As long as the investors will see the ongoing risk in investing in the US economy, and many other European countries it’s reasonable to assume that these economies will affect investors to fall back on major commodities to invest in, such as silver and gold.
In regards to the uncertainty in the financial markets, there is an apparent uncertainty behavior of investors as the Euro and USD didn’t show any apparent trend for the last couple of weeks as it changed very moderately with rises and falls; in this passing week the EURO/USD started off at 1.3391, and by the end of the week settled at 1.3118, a moderate 1.5% decline.
This passing week it seems that gold and silver rose too much too quickly at the beginning of the week (rising by 0.95% and 3.56%, respectively), and afterwards their prices fell and eventually settled on 1,379.2 USD/t. oz for Gold and 29.133 USD/t. oz. for Silver.
I have added a chart in which gold prices and silver prices are presented as follows: the price of each commodity is normalized to 100 for the price as of 13th of December – the beginning of the week.
In the final graph you can see the daily percent change of these precious metals for last week. According to the graph the Silver prices fluctuated throughout the week between 3.6% and -2.7%, while the Gold prices only changed between 0.9% and -1.8%, demonstrating less volatility compare to silver prices.
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