Gold and silver prices rose to three-and-a-half month highs late last week as European stock markets fell and the dollar weakened following the release of Federal Reserve minutes.
The trigger for Thursday’s rally was not clear. Some analysts said it was a reaction to the Fed minutes late on Wednesday, which offered no hints on the timing of an interest rate rise, and sent the dollar lower.
“The market is taking the view that the Fed is behind the curve and may be allowing inflation pressures to creep into the system,” Nic Brown, head of commodities research at Natixis told the Financial Times. “It’s clear that some investor flows are going into gold.”
On Friday, July 11, the day’s biggest mover was Indian silver, which saw a 3.0 percent increase to INR 47,211 ($784.37) per kilogram. US silver prices inched up 1.5 percent to $21.41 per ounce. The price of Chinese silver increased 1.2 percent to CNY 4,390 ($707.77) per kilogram. The price of Japanese silver rose by 0.3 percent to JPY 689.00 ($6.80) per 10 grams after a three-day flat streak.
After a 2.9 percent increase, Indian gold bullion finished the day at INR 28,570 ($474.66) per 10 grams. Chinese gold bullion reached CNY 267.10 ($43.06) per gram, continuing a five-day accelerated trend upwards with a 0.9 percent shift. US gold bullion gained 0.7 percent to finish at $1,335 per ounce. At JPY 4,337 ($42.82), the price of Japanese gold bullion finished the market day up 0.2 percent per gram.
US platinum bar saw its price rise 0.5 percent to $1,508 per ounce. Japanese platinum bar finished the day up 0.5 percent to JPY 4,931 ($48.68) per gram. The price of Chinese platinum bar held steady at CNY 319.00 ($51.43) per gram.
Up 0.1 percent since last Friday, the price of US palladium bar reached a 30-day high of $869.00 per ounce. The price of Japanese palladium bar showed little movement last Friday at JPY 2,870 ($28.33) per gram. Chinese palladium bar stayed flat at around CNY 195.00 ($31.44) per gram.