Bullion & Business Weekend Report - Aug 16
Precious metals took brutal body blows this week with London silver, gold and platinum falling 16.4 percent, 8.9 percent and 10.8 percent respectively. A dominating U.S. dollar matched against weaker global currencies helped push the metal losses. Falling crude oil played its part as well.
September delivery of crude dropped to $113.57 a barrel.
London silver closed the week to $12.82 an ounce — a loss of $2.52 for the week and $2.94 from last Friday.
London platinum fell to $1,400 an ounce — a drop of $170 for the week and $152 from last Friday.
London gold closed to $787 an ounce, losing $77 for the week and $67 from last Friday.
"This week’s sheer massacre in values will represent the largest such decline in 25 years for the yellow metal," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"Attribute these moves to whatever causes you like, but do not live in denial. The markets have shifted into a new phase, its participants have voted, and they are telling you that the growth worries have shifted to economies outside the US. Expectations are that (albeit not in a straight line) the dollar will continue higher."
Gold typically follows oil and moves opposite to the dollar, as a weakened dollar encourages investors to buy gold, also considered a hedge during times of high inflation and economic uncertainty.
Silver, gold and platinum performance charts and tables follow as well as a Reuters weekly business recap video and three related precious metal articles.
