Last week GOLD had a two percent drop, reaching $1,210 an ounce. This is the lowest level since four months and the fifth week of declines in on gold in a row. Over 6% The price of silver has fallen, as a victim of mysterious flash crash. The worse shape of the metal market came due to better-than-expected publication of the US labor market .

According to the CME FedWatch Tool, faster job growth in the US increased the likelihood of raising interest rates even in December. Investors will be closely watching the speeches of representatives of the Federal Reserve. The most important point of the week will be the presentation of Janet Yellen, the Fed chief, in front of the US Congress.

The outlook changed significantly after Friday’s Labor Department reported an increase in non-farm payrolls in June by 222,000, more than 40,000 more than consensus. At the same time, the unemployment rate rose slightly to 4.4%.

While in the case of GOLD we were able to talk about a mild slide, the SILVER was listed as a true collapse. The course over the last week gave back over 6 percent and closed at $ 15.6 on Friday. A day earlier SILVER noted so-called flash crash- in few minutes the metal lost $ 1.7 at a very high volume. After a while the quotes returned to normal, but by the end of the week the loss only increased.

Thursday flash crash again opened discussion on the role of computers in global trade. There is no fundamental reason for price collapse and the main culprits are the algorithms that trade between themselves. Let’s add that this was not the first time this has happened in recent months. It is enough to mention the gigantic crash on Ethereum, the cryptal alternative to Bitcoin. Flash crash recently also happened to oil, which in May suddenly slashed by 3 percent, plotted for half a minute minimum. After a few minutes the situation returned to normal.

Michał Teklinski, Mysaver.pl

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