The precious metals market changed direction during the second part of the week. Both metals started off the week falling along with the rest of the commodities markets and Forex rates (e.g. the Euro/USD). In Europe the conditions haven't improved: The new elections in Greece will be held on June 17. The ECB temporarily stopped lending to several Greek banks. Moody’s downgraded the Spanish Banks. These events along with the positive news of the U.S housing starts may have adversely affected bullion markets. On the other hand there was some positive news from Europe mainly the higher than expected growth rate of Germany's GDP in the Q1 2012 (a growth rate of 0.5%).
On Thursday it was reported that the Philly Fed Index tumbled down to -5.8 in May. This news along with the recent minutes of the FOMC meeting from April may have rekindled the speculation around QE3. As a result metals changed direction and rose on Thursday and Friday.
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