With growing possibility of the Federal Reserve raising interest rates in December, gold prices dropped to five-month low over the week.
On Thursday, Market Watch reported that Federal Reserve chairperson Janet Yellen validated allegations on interest rates increasing at their meeting next month. As a result, the yellow metal has dropped to its second straight weekly decline.
As of 12:50 p.m. EST on Friday, the gold price was $1,206.40 per ounce, an overall drop of 1.06 percent over the five-day period.
Market Watch noted that “prospects for higher interest rates have been gold-negative,” although gold’s recent losing sessions have already reflected the possibility of a rate increase.
On the silver prices side, the white metal has also lost significant steam over the five day period, with its biggest drop coming early Friday morning to $16.43 per ounce. Although it rose briefly to $16.67, the silver price dropped again slightly. As of 1:50 p.m EST, the silver price was $16.58 per ounce, an overall loss of 1.84 percent over the five-day period.
The Economic Calendar reported Friday that as the dollar continues to grow stronger, silver prices will remain under pressure.
On the other hand, in the base metals sector, the copper price saw a sharp decline after its previous strongest weekly surge in 35 years. Early Friday, the copper price dropped to $2.45 per pound, but appeared to be on the rise again. As of 2:00 p.m. EST, the copper price was $2.46 per pound
Lastly, spot oil prices had an eventful week, rising on Thursday to $46.37 per barrel before dropping again on Friday. Still, the oil price made overall gains for the five-day period, rising 3.93 percent. As of 2:30 p.m. EST, the price was $45.44 per barrel.
CNBC reported on Friday that the price increase came on rising oil rig counts, despite a stronger US dollar.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.