During this passing week, gold and silver prices had a slow week after they
recorded one of their worst performances in 2011 a week earlier. The U.S. GDP
growth rate in the third quarter was revised down again and may have influenced
commodities traders to trade commodities down; on the other hand, the sharp rise
in the housing starts in the U.S., may have helped rally commodities and stock
markets at the beginning of the week. I speculate, this news items along with a
modest correction to the sharp falls from the previous week may have been among
the key factors to affect the development of gold and silver prices during the
week. According to Bloomberg, during the past several days there has been a
decline in holdings of precious metals backed ETFs to reach the lowest level
since November 16th. If this trend will continue it may further pressure down
gold and silver prices in the weeks to come.
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