Tag Archives: weekly gold price recap

Jun 17

Price of Gold Weekly Recap – June 10-14, 2013

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Monday Open: $1,385.10
Weekly High: $1,394.50
Weekly Low: $1,368.10
Friday Close: $1,390.60

The price of gold was characterized this week by fluctuating economic news from various world markets. A few key moves were bullish for gold, while others reinforced the bearish streak to end the week without much drastic movement.

Monday began on bullish anticipation that China’s decision to buy two gold-backed exchange-traded products (ETFs) would push up demand for the yellow metal. China was the second largest consumer of gold in 2012 worldwide, so analysts expect this is a good thing for long-term gold prospects, however, we should not expect a huge rally in the near future. China’s ETF buy, rather, provides some stability for the continuation of gold demand.

Also, Standard & Poors upgraded the U.S. credit ranking to stable from previously negative on Monday morning, which boosted the dollar short-term, but did not have a wide effect on gold. China released some raw economic data that was weaker than expected, a subtle bearish factor for the raw commodities.

The Bank of Japan was the big catalyst for Tuesday’s loss, spurring some trading out of the market overnight. The bank decided not to expand its current quantitative easing program, as some had hoped, which pulled gold prices down. However, Bank Governor Haruhiko Kuroda said they might consider it again if their borrowing costs go up.

Wednesday morning was trading in the same ballpark as Tuesday, but saw some gains by the evening. It was a quieter trading day Wednesday, with the “risk-off” mentality making way for some technical short covering later in the day, as a weaker dollar incurred some buying back into gold.

Thursday was a day of speculation, as Japanese stock markets showed some losses and analysts worried whether this would spill over into U.S. trading. Even though gold generally acts as a safe haven during these situations, this week it was carried more heavily by a risk aversion mentality. Currently, economic turmoil is not tense enough to prompt a large shift back into gold.

Friday urged gold a little north as President Obama issued a statement that the U.S. will provide arms to Syrian rebels. This news encouraged traders to think about the possibility of escalation in an already war torn country, which did move some back into the safe haven of gold, ending the week slightly higher than it began.

The marketplace will be anticipating an address from the FOMC next Wednesday.

May 14

Price of Gold Weekly Recap – May 6-10, 2013

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Monday Open: $1,462.00
Weekly High: $1,474.40
Weekly Low: $1,423.70
Friday Close: $1,444.10

Gold showed a pretty slow week between May 6 and 10, unable to break above technical price barriers. Monday began the trading week with slight gains based on the still-strong demand for physical gold and a weaker dollar.

Tuesday slumped down to $1,450. The name of the game Tuesday was equities, as traders had a risk-on mentality and turned to taking profits to invest in equities, which were at an all-time high. The dollar was also stronger Tuesday.

Wednesday saw the gold market improve a little from some short covering and better economic data from China and Europe. Since Tuesday’s prices dropped to a low, some traders took advantage of this and jumped in the market. The dollar was also weaker in the middle of the week.

Then, as soon as the price of gold makes some gains, it drops back down again. Thursday experienced some selling pressure and technical corrections from the previous day. Friday saw gold hit a two-week low, concurrently with Thursday night’s two-week high for the dollar. Certain unfounded rumors circulated Thursday night that indicated the Federal Reserve would put an end to its quantitative easing program soon, a rumor that is no good for gold. The bears are currently in the long-term technical advantage.

Mar 18

Price of Gold Weekly Recap – March 11-15, 2013

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Monday Open: $1,580.40
Weekly High: $1,596.90
Weekly Low: $1,579.40
Friday Close: $1,591.90

After last week’s uneventful run for gold, this week provides a positive contrast. The middle of the week hit a two-week high and gold speculators are now wondering whether the yellow metal will push through the $1,600 roof soon.

Monday’s stayed relatively flat, but Tuesday saw gold jump up in response to a European Central Bank official announcing that the region is not quite out of its sovereign debt crisis. Jens Weidmann, Bundesbank chief, addressed the public both Tuesday and Wednesday to relay the message that he sees no end to the crisis in sight, and European governments are “not giving clear direction.” This fresh fear rallied gold through into Wednesday.

Thursday morning’s gold prices responded negatively to a strong dollar, and dipped due to profit-taking from investors capitalizing on the high from Wednesday. But the yellow metal reached even greater heights by the end of the business day as bargain hunters swept into the market to buy at the lower price point.

There had been some speculation this week about whether central banks are manipulating the set price of gold to keep it low and bolster their own currency after the recent Libor scandals in London. Three central banks are now paying $2.5 billion in penalties for manipulating the London interbank offer rate. A dozen more are under investigation. The Commodities Futures Trading Commission, the agency responsible for revealing the scandals, is now also considering investigating these banks’ relationship to the price of gold.

A London Bullion Market Association spokesperson maintains that the price of gold is set based on supply and demand, and not advantages to central banks. “It’s nothing like Libor,” this spokesman said.

Friday closed very near the $1,600 level. Next week, gold investors can look forward to a Federal Reserve meeting for further indication of gold prices. In a Kitco gold news survey, 17 of 25 respondents expect to see prices go up next week.