Fed Stimulus Shock Sees Gold, Silver Prices Still Falling on Weekly Index

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Our friends at ETF Securities (who would, of course, benefit if investors bought up physical gold and silver ETF shares) opined thusly in their weekly report:

“While tactical sentiment towards gold and silver prices will likely remain negative as long as interest rate expectations continue to rise and the US dollar continues to strengthen, there are reasons for contrarian investors to look favourably on precious metals.

“At current levels gold, silver, platinum and palladium are estimated to be trading around or below their respective marginal costs of production. In addition, physical buyers at current prices – particularly of gold – have started to step in again.”

today's metal prices - MetalMiner IndXThe week’s biggest mover on MetalMiner’s weekly Global Precious Metals MMI® was the price of Chinese silver, which saw a 9.9 percent decline. This week marked the third in a row of declining prices for the metal. The price of US silver fell 8.9 percent after rising 1.8 percent the week before. For the third week in a row, the price of Japanese silver dropped, falling 7.4 percent. Following a 0.1 percent increase in the week prior, the price of Indian silver fell 6.1 percent last week.

The price of US gold bullion fell 6.7 percent after rising 0.5 percent the week before. The price of Chinese gold bullion dropped 5.8 percent this week, closing out the third consecutive week of falling prices. The price of Japanese gold bullion fell 4.2 percent over the past week. This was the third week in a row of declining prices. Following a 0.2 percent increase in the week prior, the price of Indian gold bullion fell 3.4 percent last week.

The past week saw US platinum bar close with a 4.8 percent decline. Chinese platinum bar weakened by 4.6 percent. Japanese platinum bar prices fell as well.

Chinese palladium bar dropped 8.0 percent over the past week. The price of US palladium bar decreased 7.7 percent from the previous week. Japanese palladium bar saw a 0.9 percent decline.

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The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.