It was Christmas time and so was the trading at the beginning of the week. Monday was pretty calm. Tuesday was not trading day. Some small price rallies appeared on Wednesday and Thursday when gold price decided not oscillate around $1650 and the silver price refused to stay under $30. Both prices went up quite vertical during the day trading session but then consolidated back on lower levels. Prices declined a little bit on Friday but it was another calm day on COMEX. Both of them closed over their important support levels.
Gold finally closed on $1656.3 per ounce what was less just $0.7 compare to the previous week. Silver closed on $30.03 per ounce what was almost similar price level as the previous week. The gold/silver ratio is 1 to 55.15 (i.e. you could buy 55.15 gram of silver for 1 gram of gold, it was 55.31 week before). It means that silver was slightly more successful compare to gold.
Small price actions could be related with problems of fiscal cliff in the US which will not be probably solved till the end of the year. But the reason could be dug also in the fact that the last week price drops has encouraged some buyers and satisfied sellers. The short concentrated positions on COMEX were fairly declined on gold. It is a little bit different situation on silver where concentrated short positions were declined but not so radically as on gold. Both prices declined under their 200 day moving averages last week and they remained there for the rest of the week. It seems to me that it is very probable that bullion banks are satisfied with the situation and we have reached very probably the bottom for now. But as usually anything is not sure in these days and some price declines are still possible especially on silver.
Overview of the prices of gold and silver for the remaining periods:
Source: upner.com, kitco.com