Silver started to pick up and rise during the week, but it soon switched direction and fell during the last days of the week; by the end of the week, silver price finished below its starting point. Gold, on the other hand, also started strong and shifted to falls, but it was much more moderate; in the end of the week gold price finished higher than it started. The week started with House of Representatives voting for raising the US debt ceiling, but by the end of the week S&P downgraded the credit rating of the US to +AA. This news was published by the end of the week and could affect the financial markets on Monday even though there were already major falls in the financial markets during the last couple of days of the week.
Here is a short review of the changes in gold and silver during the week of August 1st to August 5th 2011:
Precious Metals Prices weekly summary:
Gold moderately inclined by 1.86% during the week; furthermore, last week’s average gold reached $1,619 /t. oz which was 1.79% above the previous week’s average price of $1,648 /t. oz. Gold finished the week high at $1,651 /t. oz.
Silver on the other hand declined by 2.79% from beginning to end, and this week’s average price was $39.76/t oz or 1.35% below the previous week’s average $40.31/t oz.
During the week, the average daily per cent change of gold price rose by 0.26%; silver fell by -0.9%.
In the chart below are the silver and gold that were normalized to 100 to the price at the beginning of the week – August 1st. It shows the trend of these precious metals prices.
In the chart above gold steadily increased during the first half of the week, but by the end of the week it moderately declined. Silver rose very sharply up to Wednesday, but afterwards it fell very sharply and finished below its initial price level.
The daily per cent changes gold recorded above 1% increases on Tuesday and Wednesday; during the rest of the days gold price had much lower per cent changes. Silver fluctuated very sharply during the week as it started the week with falls, then shifted to sharp increases and ended the week with rapid falls.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.