On a short week, silver and gold had a bit of a wild ride, with both metals slipping overall over the four days of trading. Currency movements as well as S&P trading had a lot to do with commodity price movements, all of which will be discussed below.
Stagnant and Slow
With Martin Luther King Jr. Day this past Monday, the week was off to a slow start before it even began. By the time Tuesday came there still was not much news to talk about and silver remained relatively still amid no big market-relevant news.
Many were under the impression that silver was going to stay above $32, and while the week may have not been considered a success, staying above the $32 mark would mean that the metal at least didn’t fall off.The hopes were high for gold as many investors patiently wait for gold to break the $1,700 threshold. The early part of the week set the tone and it quickly became apparent that gold was not going to make the jump to $1,700.
With the early part of the week yielding little to no news at all, the latter part of the week have been full of negative news about the value of silver. By the end of the day Thursday, silver had lost 70 cents and had once more took a dive back into the $31 range. Most of these recent dips in value have been temporary, but silver’s inconsistency lately has been disturbing and flat-out annoying to most investors.
Many hoped for a small turnaround on Friday, but with a posted loss of over 40 cents it seems as though we are going to have to wait until next week before silver has a chance to improve upon the disappointing end to this week.
Another thing that happened this week that did not help silver or gold out is the fact that both the euro and the USD have been on the rise during the latter stages of this past week. At first it was the USD that began to pick up on Tuesday and Wednesday, but the euro hopped on board Thursday and Friday and both currencies ended the week on a relative strong note.
It is common knowledge that whenever the major currencies like the USD and euro rise, gold and silver prices slip, although it is mostly a short-lived slip in price.
On Tuesday silver opened with a price of $32.25 and at the end of the day Friday silver had slipped a whole dollar to now be sitting at $31.25. Gold started the week roughly ten dollars from $1,700 but over the course of the week had declined about 30 dollars ending at $1,660.
This market update is provided weekly with analysis. You can always check prices by watching our up-to-date gold and silver price chart.