Gold and silver started off 2012 with very sharp gains mainly during the first trading day of the year. Since many other financial markets also started 2012 on a positive note including crude oil market and American stock market, this rally may have partly due to the phenomena known as “the January effect”. The positive reports from the U.S. on the U.S. manufacturing PMI may have also contributed to the markets rally at the beginning of the week. But by the end of the week gold and silver changed direction and slightly declined on Friday, perhaps due to a market correction and a reaction to the recent U.S. labour report.
Gold sharply rose during the first week of 2012 by 3.19%; furthermore, during last week the average price reached $1,612.53 /t. oz which is 2.48% above the previous week’s average price of $1, 573.56 /t. oz. Gold finished the week at $1,616 /t. oz.
Silver, much like gold, inclined during the week by 2.75%; this week’s average price reached 29.16/t oz which is 3.59% above the previous week’s average $28.16/t oz.
In the following chart are the silver and gold that were normalized to 100 to the end of last week – December 30th. Gold and silver had a sharp upward trend mainly during the first half of the week.
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