While the US stock markets have cooled off after their few week long boom, you would think gold and silver would pick up the slack. Nothing could have been further from the truth because right away, at the start of this week, gold and silver posted massive declines. In fact, we saw gold lose over $100 in one day which is something a lot of investors have not seen lately. The end of the week saw metals make some decent gains, but compared to what they lost earlier in the week, it is nothing more than a consolation prize.
G20 Meeting
The end of this week saw a G20 meeting taking place and as is always the case, market watchers were paying close attention. Literally anything that is said at these meetings has heavy implications on the precious metals markets, but it seems as though this time is the exception.
The meetings really didn’t accomplish much of anything which meant that gold and silver were likely not to be heavily effected, and they weren’t. While gold did post solid gains on Friday, none of this was due to anything said at the G20 meetings. It comes as no surprise that little was accomplished at the G20 meeting because many of the nations involved are much more concerned about their own, domestic economic issues as opposed to large-scale global ones.
Major Losses, Yet Again
When last week came to a close, not many people thought that precious metals could take many more hits. Little did we know, because as soon as the week started gold and silver took huge hits and were in worse of a situation than almost anyone could have anticipated.
As the week went on gold and silver remained in a fairly steady position. Many hoped that bargain hunters would swing the price of metals right back around but that was far from the case. Thursday and Friday saw gold and silver improve slightly, but this was not nearly enough to make investors happy.
The Week Ahead
The week ahead hold with it a bag full of mystery. Last week most people were convinced that precious metals were not going to fall any further, but it turned out to be quite opposite of most people’s expectations. We will need to closely watch markets next week in hopes that the US economy and precious metals will turn things around.
While there was not much news out of North Korea this week, it is important that we still stay aware of the ongoing situation there.
Weekly Shift
Gold started the week out at $1,488 and after heavy losses ended the week at $1,404; a loss of $84. Silver started the week at $25.98 and ended at $23.28; a loss of $2.70.