Gold prices continued their steady rise this week, gaining another two percent to rise back above $1,350 per ounce. The yellow metal is now up 26 percent so far this year.
Gold prices were up 2.26 percent this week, trading at $1,350 per ounce as of 12:06 p.m. EST. The yellow metal is now up 26 percent so far in 2016.
A weaker US dollar and poorer than expected economic data from the country lent support to gold on Friday, the Wall Street Journal reported. Given the poor economic performance from the states, market watchers are less confident that the Federal Reserve will raise interest rates this year. The Fed once again elected not to raise rates in its most recent meeting this Thursday.
Meanwhile, speaking to CNBC, Boris Schlossberg of BK Asset Management stated that he believes gold prices could reach $1,400 per ounce before the year is through.
“The Fed stayed stationary and gave absolutely no indication of doing anything in September, and gold rallied further,” he explained. “I think we have a very reasonable chance here to make $1,400 on gold before the end of the year, assuming the Fed stays stationary.”
Silver prices were also up for the week, rising 3.16 percent to trade at $20.25 per ounce as of 12:12 p.m. EST.
On the base metals side of things, copper prices were flat again this week, dipping 0.25 percent to sit at $2.21 per pound as of 12:15 p.m. EST. A weaker US dollar lent some support to the red metal, however, giving it a bit of a bump during Friday trading hours.
As per news.com.au, LME copper was up a percent to $US4,896.50 a tonne on Friday after hitting a two-week low of $US4,830 per tonne earlier in the week.
Finally, spot oil prices dropped by 4.2 percent to $41.32 per barrel at 12:18 p.m. EST. Oil has dropped 14 percent in the past month, and some are suggesting that oil could be heading back to a bear market.
“The tables are turning on the bulls, who were prematurely constructive on oil prices on the basis the re-balancing of the oil market was a done deal,” Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas, told the Globe and Mail. “It’s probably going to take a little longer than they expected.”
Brent crude oil futures were down 45 cents to $42.25 per barrel on Friday, while West Texas Intermediate was up 21 cents to $41.35, according to Reuters.
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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