Gold and silver continued their rally as they have inclined every single day of last week. Such a steady increase wasn’t recorded in precious metals prices for a long time. The sharp falls in the stock markets helped the bullion market to rise along with the speculations around the expected recession in the US and Europe. There are some unreliable rumours that the Federal Reserve may consider launching a new quantitative easing plan (QE3), but there are no signs of this manoeuvre taking place. These rumours might have contributed to the falls of the stock markets and the rally of gold and silver over the week.
Here is a short review of the changes in gold and silver during the week of August 15th to August 19th 2011:
Gold increased by 5.36% during the week; furthermore, last week’s average gold reached a record high of $1,802 /t. oz which was 3.16% above the previous week’s average price of $1,746 /t. oz. Gold finished the week at $1,852.2 /t. oz. Silver also inclined by 7.96% from beginning to end, and this week’s average price was $40.55/t oz or 4.31% above the previous week’s average $38.87/t oz.
During the week, the average daily per cent change of gold rose by 1.23%; silver also inclined by 1.67%.
The last chart is of the daily per cent changes of silver and gold during last week (or in other words the price changes around the trend). It shows gold and silver had a steady nearly unchanged per cent change throughout the week with gold per cent daily changes ranging between 0.5% and 1.5%; silver also inclined during the week on a similar rage except on Friday when silver sharply inclined by over 4%.
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.
For further reading: