Here is your weekly recap of the changes in Spot Gold price and Silver prices for the week of November 29th to December 3rd:
This week in the market of precious metals was characterized with strong rises and bullish behavior of investors and traders as the prices of gold and silver rose throughout the week. At the end, the Gold prices rose by 1.2% from this week’s 1,387 USD /t. oz average compare to last week’s average weekly price of 1,370 USD /t. oz.
The same could be said for silver prices as they also rose by 3.3% from this week’s average weekly price of 28.33 $/t oz., compare to 27.42$/t oz.
On average, the gold prices rose by 0.61% every day of the week, while in Silver it’s more then double as its price rose by 1.81% on average every day.
In the following table I present a summary of last week’s descriptive stats of gold prices and silver prices:
Investors see the ongoing risk in investing in the US economy, while others consider that the risk in many European countries is also on the rise as I have showed in a recent post. Thus, 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.
Furthermore, there is an apparent uncertainty behavior of investors as they flip flop between the Euro and USD: the EURO/USD fell at the beginning of the week, reaching as low as 1.2983, and by the end of the week bouncing back to 1.3415. This could be fueled due to Ben Bernanke’s statement that he will consider expanding the recent quantitative easing program to more then 600 billion USD that was originally planned, if needed. This could make the USD even less attractive and thus more traders will consider investing in commodities.
Even though Gold has proven to be a very strong commodity, and it will perhaps continue to rise in the short term, however if I would speculate, I think that there will be a decline in Gold prices eventually, the 64,000 dollar question is only when…
Rapping up this week’s data analysis…
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 29th of November – 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 0.5% and 4%, while the Gold prices only changed between 0% and 1.4%, demonstrating less bullish behavior compare to silver prices.