Gold down in AU$ silver up in AU$

Argentum

Argentum

Well-Known Member
I'm guessing this is a glitch; how can we have almost 3 % gain in silver and 1.5% drop in gold. Are the graphs messed up?
 
SINGAPORE: Gold extended losses to a third session on Monday, falling as much as 1 per cent as US President Barack Obama chose to seek Congressional approval before initiating any military action against Syria.

But silver rose 3.7 per cent to $24.34 in late afternoon trading as investors covered short positions. That, along with short-covering in bullion, helped gold pare some of its losses.
Click to expand...

http://economictimes.indiatimes.com...ps-on-short-covering/articleshow/22224421.cms
 
never seen gold down a lot and silver up a lot on same day. It seems in US$ only silver up but gold down couple of $
 
Argentum said:
I'm guessing this is a glitch; how can we have almost 3 % gain in silver and 1.5% drop in gold. Are the graphs messed up?
Click to expand...


The divergence was because:
- Gold down - market less worried as strike action on Syria dealyed. So sell gold.
- Silver up - positive Chinese PMI data was released which was encouraging for silver as a manufacturing commodity. So buy silver.

note the Chinese PMI data has also supported increase in A$ early this week.

It shows that there is not always a super tight marriage between Gold and Silver price. As you noted it was a pretty sizeable variation in the metals performance to start the week.

Mr.G
 
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