First up, then down.

Gold price was moving within the $1690 and $1695 corridor at the beginning of the week. Silver price did much more. It seemed that silver could cross $32.5 but once it was close to this level the price moved down. Both gold and silver were safely traded over their 200 day moving averages and silver was even above 50 days moving average for a while. Both prices started to decline on Wednesday and the rest of the week was not so optimistic for both metals. Friday´s session was a whole day downturn for both metals.

Gold finally closed on $1659.3 per ounce what was $25.4 less than the previous week. Silver closed on $31.18 per ounce what was less $0.71 as well. The gold/silver ratio is 1 to 53.22 (i.e. you could buy 53.22 gram of silver for 1 gram of gold, it was 52.83 week before). So relatively gold held its positions better compare to silver last week. HUI index (index of the most important gold mining companies) ended at $399.04 and was down $30.05 compared to previous week. XAU index (index of gold and silver mining companies) ended at $150.82 and was down $10.52.

The story behind the precious metal market stood the same and I have nothing special to add. Short positions of bullion banks on COMEX are once again up but we have had available data only till Tuesday so we can expect some declines for next week because of price declines since Wednesday.

The precious metal community is speculating about the shortage of physical silver. They consider the last week news that the US Mint had suspended the sale of silver American Eagles as specific sing of the shortage. Some also informed that silver shortage spread to Canadian Maples because wholesale premiums had been raised several times throughout the day and Canadian Mint started rationing these coins.

As usual we can only speculate what exactly happens in the short term in the price moves of both metals. Some predicts that something big is in front of us but they add at the same time that it is also possible that prices hit some lower levels at $1640 for gold and somewhere about $30,5 for silver first. But both prices of gold and silver are set on COMEX and bullion banks could do with them what they want because of their concentrated massive short positions; at least for now. Important breaking points are still over $1700 for gold and $32 for silver. But we have to wait for them. How long? We will see.

Overview of the prices of gold and silver for the remaining periods:


Gold chart


Silver chart



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Matúš Pošvanc

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About matus.posvanc

Trhu so zlatom a striebrom sa venujem od roku 2011. Prešiel som rôznymi fázami a pohľadmi na problematiku. "Trh je manipulovaný. To je jasné!" Inak by cena zlata predsa nešla dole. "Zlato na úrovni 100 tis. USD? Žiaden problém." Najneskôr do pár rokov. "Futures trh je najväčšie zlo a tzv. papierové zlato je nutné zakázať". Nuž, po dlhom štúdiu tejto problematiky, som hlúposti a táraniny opustil. Ostalo to, čo považujem za podstatné. Význam zlata je veľký. Avšak bez pochopenia trhu okolo neho, sa sám od seba znovu neobjaví. Kúpiť zlato ako časť svojho portfólia má zmysel. Snažiť sa na zlate zbohatnúť? To je iný príbeh. Jednu jeho časť nájdete na mojom blogu.
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