Gold: $1,293.51 9.34
Silver: $17.17 0.12
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February 1st Weekly Silver Market Update
Article By: Kyle Wanchalk on February 01st, 2013

Gold and silver both had dramatic highs and lows this week, with peaks coming on Tuesday and Wednesday followed by a major sell-off on Thursday. The Fed’s meeting this week along with a booming stock market were two of the main factors affecting both silver and gold’s performance this week.

Fed Bond Buying to Continue

During the Fed’s meeting this week many financial topics were discussed, but the main talking point was the bond-buying that the Fed is currently employing. So long as the Fed continues to buy bonds back from the public, the more trust people are going to put in precious metals so this piece of news is good for all metals investors.

Out of most of the recent meetings that the Fed has had, this one was quite uneventful for news as far as  precious metals goes.

US Jobs Data, Mixed News

All week investors were waiting for the US jobs report that was set to be released on the last day of the week and the news they got was hard to interpret. I say this because while the month of January shows that over 100,000 nonfarm jobs were added to the US, the unemployment rate rose to almost 8%. Overall this news had little impact on the price of gold and silver on Friday however.

Stock Market Surging

Another reason why gold and silver ended the week with little to no movement was because the US stock market is doing its best since the late 1980s. As long as the stock market is doing incredibly well it is unlikely that gold or silver will receive as much attention as one would anticipate.

The hope for gold and silver is that the continued bond buying being completed by the Fed will increase the supply of money so greatly that investors will flock to gold and silver. Only time will tell however and as long as the stock market gains strength gold and silver will improve, but only by smaller margins most experts believe.

Weekly Move

At the end of the week both silver and gold improved upon the position they were at when the week began. When all was said and done gold was up about $7, moving from $1,660 on Monday to $1,667 at the end of the day Friday. Silver finished the week overall on a positive note, moving up about 60 cents, from $31.22 at the open of Monday to $31.85 when all was said and done on Friday.

This market update is provided weekly with analysis. You can always check our gold and silver price chart on-site.