Gold: $1,282.26 -7.94
Silver: $17.11 -0.20
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May 24th Weekly Silver Market Update
Article By: Kyle Wanchalk on May 24th, 2013

Gold and silver had a better run this week than most people had anticipated. With a few large news stories being released this week, all of which having the ability to bring down the value of metals, gold and silver weathered the storm and finished the week far better than anyone would have anticipated on Monday. Though huge gains were not made by either metal, investors are taking solace in the fact that losses for the week aren’t closing in on $100 like they were only 7 days ago.

Word on Quantitative Easing

The most highly anticipated news story of the week was without a doubt Federal Reserve chairman, Ben Bernanke’s speech to Congress about the future of monetary policy in the US as well as the current state of the economy. Throughout his address, Bernanke hinted that he wished Quantitative Easing would remain unchanged, but later on he announced that it could start to be wound down as soon as a few weeks from now. With the US economy seemingly recovered from the dive that started back in 2008, QE is no longer necessary.

Though this news was anticipated to be highly bearish for gold and silver, metals only dropped in value by a small margin on the day. It actually ended up working out for gold and silver as stock markets cooled off during the back part of the week giving gold and silver a little more room to gain in value.

Data From Around the World

Another key bit of news that was released this week was the latest slate of Chinese manufacturing data. This bit of news lived up to expectations as numbers were even more disappointing than had been originally anticipated. The actual data showed that manufacturing contracted in the country as opposed to any amount of growth. Once more, it seems as though there is no denying the fact that China’s economy is merely a shadow of what it once was. With inflation becoming a mounting issue, the central bank in China is going to need to make some adjustments to the monetary policy, and fast.

World economic news was not all bad this week as it was announced that the German economy grew by one tenth of a percent in the first quarter of this year as opposed to the last quarter of 2012. In fact, most of the economic reports in Germany indicate that their economy may not be doing nearly as badly as it was only a few months ago. Though we have good news out of Germany, the rest of Europe is not doing even close to as well.

Looking Forward

As me move into the final week of May, we will be keeping our eyes fixated on both the US Dollar and the Japanese stock market. Though both entities faltered a bit during this week, it is unlikely that they will remain as flat as they were on Thursday and Friday.

With the United States taking Monday off in order to celebrate the Memorial Day holiday, expect the start of next week to be a slow one.

Weekly Move

Gold started the week at $1,365, and when trading was finished on Friday it was sitting at $1,385. This was a gain of about $20. Silver started the week at $22.42 and finished the week at $22.41. This was a loss of about one penny.

This market update is provided weekly with analysis. You can always check spot silver price by watching our on-site charts.