May 3rd Weekly Silver Market Update |
Gold: $1839.13 3.32
Silver: $24.99 0.09
May 3rd Weekly Silver Market Update
Article By: Kyle Wanchalk on May 03rd, 2013

Last week we saw both gold and silver rebound a bit from their massive collapses a few weeks ago. This week was a bit of a different story but the ending numbers are not going to leave investors too disappointed. For the first time in a while both gold and silver had decent consecutive weeks. Perhaps this is a sign that people are showing more faith in precious metals as world economies and stock markets continue to see inconsistent results.

European Central Bank Meeting

Perhaps the most intriguing story over the course of the past 5 days was a European Central Bank meeting that focused on interest rates across the eurozone. The conclusion of the meeting saw interest rates fall from .75% to .5% which made the entirety of Europe happy about the future prospects of their economies.

Poor economic data in regards to manufacturing output and retail sales is just two of the many reasons why slashing interest rates was more or less the only option for the ECB. If Europe continued to operate with such high interest rates it is hard to imagine anything short of an unexpected event would spur the many economies across the region. Who knows if the reduced interest rates will help Europeans going forward but many experts believe that it will.

Hovering Around Even

Gold and silver started off this week posting decent gains on Monday and Tuesday, but were right back into a rut come Wednesday. Thursday saw gold hold roughly the same position it was in on Monday while silver was trading down a bit.

Demand is still fairly high around the world which may lead you to wonder why gold and silver did not replicate last week’s gains this week. Part of the reason global demand did not spur the price of metals forward can be attributed to the fact that a large part of Asia took the middle part of the week off in order to celebrate a holiday. With Asian markets inordinately quiet, it is no surprise that demand for both gold and silver was not enough to see their spot values rise significantly. Investors should not get too anxious, however, because in these tough economic times it is better to see metals stay in a roughly fixed position with slight movement upwards than to see a collapse the likes of which we saw not too long ago.

Looking Forward

The main point of interest going into the first full week of May is going to be the spot values of precious metals. As a leader of the commodities market investors of all types are going to be closely examining the movements of gold and silver, but especially gold. Interest in metals seems to have been renewed as of late with precious metals dealers both brick and mortar and online running out of stock of certain items.

Weekly Move

Gold started the week at $1,466 and ended up at $1,469. A gain of about 3 dollars. Silver began the week at $24.11 and closed on Friday at $24.10. This was a loss of just about one penny.  .