Gold and silver started the week, unlike last week, with very sharp price changes; these changes were also felt in other financial markets such as the American stock markets. The Super-Committee in the U.S. was suppose to decide on budget cut but failed. This news may have stirred up the markets including gold and silver during the first part of the week. The U.S. durable goods report was negative and the U.S.’s GDP for the third quarter was revised down. These reports may have also pressured down commodities including gold and silver. Finally, Germany’s failure to sell all its bonds raised the concerns for the stability of Europe and for its debt crisis. According to recent reports, despite the fall in gold and silver prices Hedge funds are still bullish on gold.
Gold slightly rose during the week by 0.59%; on the other hand, last week’s average gold of $1,692 /t. oz was 3.64% lower than the previous week’s average price of $1,756 /t. oz. Gold finished the week at $1,688 /t. oz.
Silver, unlike gold, slightly declined during the week by 0.3%, and this week’s average price reached 31.82/t oz which is 4.37% below the previous week’s average $33.27/t oz.
During the week, the average daily per cent change of gold decreased by 0.51%; silver also declined by an average daily rate of 1.01%.
As seen in the chart above, gold and silver sharply rose on Tuesday, but then corrected and declined the next day. During the second part of the week both metals’ prices didn’t change much.