Gold and silver prices resumed their downward trend they have had during most of
the month. Their sharpest drop came on Wednesday when gold and silver prices
precipitately declined by 3.03% and 4.17% respectively. This decline came a day
after the FOMC held its meeting and decided to keep its policy unchanged and not
introduce any additional stimulus plan for now as the U.S. economy is showing
signs of recovery. Since the expansion of the U.S money base was related to the
rally in gold and silver prices, the decision of the Fed not to declare another
expansion pulled down the prices of bullion. Other U.S related publications came
out during the week such as the U.S PPI, Philly Fed manufacturing Index and U.S
CPI. All these indexes were positive, but didnt rise by a high rate and thus may
have had only little effect on the financial markets including metals market. By
the end of the week, gold price declined by 3.25% and silver by 4.7% and thus
bringing the prices of precious metals to their level back in early January
2012.
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