Gold and silver continued to sharply fluctuate during the week with no clear direction even though silver price ended the week slightly above its level on Monday, October 3rd, while gold finished slightly below. The main events that may have affected traders in the bullion markets and in turn contributed to the high volatility in the gold and silver markets include: the publication of U.S. PMI manufacturing report on Monday; the ongoing speculation around the European debt – this time there were some encouraging news that may have driven the financial markets up; the recent testimony of Ben Bernanke rekindled the rumours of additional future steps to be taken by the Fed; the ECB keeping the European Area interest rate unchanged at 1.5%; and the recent U.S. labour report, which was published on Friday, showed in increase in employment by 103k during September. These events may have shifted the direction of gold and silver throughout the week.
Gold slightly declined by 1.32% during the week; on the other hand, this week’s average of $1,638 /t. oz was slightly higher by 1.06% than the previous week’s average price of $1,621 /t. oz. Gold finished the week at $1,635 /t. oz.
Silver, unlike gold, moderately increased during the week by 0.64%, and this week’s average price was 30.75/t oz or 0.97% above the previous week’s average $30.45/t oz.
During the week, the average daily per cent change of gold increased by 0.18%; silver inclined by a average daily rate of 0.66%.
In the chart below are the silver and gold that were normalized to 100 to the price at the beginning of the week – October 3rd. It demonstrates the weekly development of gold and silver.
The last chart is of the daily per cent changes of silver and gold (or in other words the price changes around the trend). It shows that silver had two large daily gains: on Monday and Thursday. Gold largest gain came only on Monday.
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