Gold and silver both saw decent gains this week as some tensions in the Middle East coupled with sub-par Chinese economic data helped both metals move forward. An inconsistent US Dollar Index has both helped and hurt gold and silver throughout the course of the week. Increased demand for precious metals also helped boost spot values throughout the duration of the week. The situation in Egypt is still in flux and we are far from seeing the end of things when it comes to dealing with the former president Morsi.
Over the course of the past week we have heard a lot of news from the Middle East, specifically Egypt. Protesters have been taking to the streets over the past two weeks to protest President Morsi and his policies. Many of the people feel as though he has forgotten about them and their needs and that he should lose his position as president. If you know anything about investing in precious metals, you know that any sort of tensions like this help out the spot value of both gold and silver.
More recently these protests have turned from peaceful rallies to clashes between pro-Morsi supporters, anti-Morsi protesters, and police forces. So far there has not been too much overt violence, but many fear that this could change at any point in time. For this reason many investors and market watchers are keeping their attention on Egypt and will be for the foreseeable future.
Sub-Par Chinese Economic Data
This week saw a report that indicated inflation in China was on the rise. The Consumer Price Index, also known as CPI, for China in June was up almost 3% from the same point last year. This comes as a shock to some as most people were expecting a CPI increase of no more than 2 and a half percent.
Seeing as precious metals are often an investor’s number one way of fighting against the force of inflation, investors all over the world have been taking this news as a reason to buy more gold and silver. While China’s economy seems to be in a bit of trouble as of late, they are still faring better than nearly every other economy in the world.
According to many, this news of rising inflation should not really be news to anyone as governments all over the world have been relentlessly printing dollars for the past few years. Whenever a government prints money with increasing frequency with few solid assets to back it up inflation is always a very real possibility.
Gold started the week at a spot value of roughly $1,223 and by Friday at closing time was sitting at about $1,282. This is a gain of almost 60 dollars over the course of the week.
Silver, on the other hand, started the week at $18.99 and by closing time on Friday was sitting at 20.03. This is an impressive gain of a little over a dollar.
This market update is provided weekly with analysis. You can always check spot silver price per ounce by watching our on-site charts.