Gold and silver changed direction from the slow climb up the ladder they have experienced in the first couple of weeks of October as they declined during most of last week. The speculation revolving the next move of the EU policymakers next week may have contributed to the volatility of precious metals’. Some speculate that the liquidity problem many European banks are facing caused them to trade in their commodities’ holding including in gold and silver in order to boost their capital buffer. The Philly Fed Manufacturing Index sharply inclined during October and the U.S. housing starts also picked up in September; these news items may have also helped relieve some of the tension in the financial markets and thus cool the recent gains in the bullion markets.
Here is a short review of the changes in gold and silver during the week of October 17th to October 21st 2011:
Gold sharply declined by 2.42% during the week; furthermore, this week’s average gold of $1,645 /t. oz was lower by 1.68% than the previous week’s average price of $1,673 /t. oz. Gold price finished the week at $1,636 /t. oz.
Silver, much like gold, sharply fell during the week by 1.97%, and this week’s average price was 31.28/t oz or 2.62% below the previous week’s average $32.12/t oz.
During the week, the average daily per cent change of gold decreased by 0.56%; silver declined by an average daily rate of 0.60%.
In the chart below are the silver and gold that were normalized to 100 to the price at the beginning of the week – October 17th. It shows the weekly development of gold and silver.
In the chart above gold and silver started to sharply fall during the middle of the week especially on Wednesday and Thursday, then there was a correction in the last day of the week as gold and silver bounced back and inclined.
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