It was a week of highs for the gold price as the yellow metal reached its highest level in three months on Friday (February 24).
Friday morning, the precious metal soared to $1,258.90 per ounce, catapulted by comments made by the Federal Reserve and political uncertainty in the US and overseas, the Wall Street Journal stated.
Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said in a note on Friday that gold price support has “come from the unwinding of the post-election Trump trade, which has seen bond yields and the US dollar both move lower.”
Similarly, Andy Schectman, president of Miles Franklin, told the Investing News Network (INN) that Trump may “get what he wants, which is a weaker dollar.”
“If so, that means gold should outperform all expectations,” he continued. “A weaker dollar and the fact that other currencies are crashing like the Euro, which this morning is within basis points of a fresh 14-year low, are making it that much more difficult to overcome surging demand for history’s most time-honored store of value, gold.”
As of 1:18 p.m. EST on Friday, the gold price was $1,256.60 per ounce.
Gold’s sister metal, silver, has also had a strong week.
The Economic Calendar wrote on Friday that the rising white metal is pushing into “positive territory” for the five-day period as the US dollar lowered for a third straight session. The publication further noted that the silver was on pace for a five-day gain of 1.5 percent.
As of 1:20 p.m. EST on Friday, the silver price $18.31 an ounce.
On Thursday, Market Realist stated that the red metal has risen 9.6 percent so far in 2017. That said, the publication further notes that supply issues could “push the copper markets into a supply deficit” in 2017.
Still–as of 1:30 p.m. EST on Friday, the red metal was $2.68 per pound, making that a 8.37 percent increase over the five-day period.
The publication further stated that the price dropped even though OPEC vowed to increase compliance with output curbs.
“The oil market remains focused on the global rebalancing act, with attention centered on compliance and US production growth.” Michael Tran, director of energy strategy at RBC Capital Markets, told Reuters.
As of 2:00 p.m. EST on Friday, spot oil prices were $54.02 per barrel.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
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