Weekly Round-Up: Foreign Demand Bumps Up Gold Prices
Gold prices rose again this week as a result of stronger demand from Asian markets.
Gold prices made sharp gains early in the week, particularly from a weaker US dollar boosting demand from foreign investors, according to the Wall Street Journal.
As of Friday at 1:28 p.m. EST, the yellow metal was $1,265.60 an ounce–a 0.80 percent increase over the five-day period.
Reuters noted the increase was the precious metal’s first weekly rise since September 30, as a result in rising demand from Asia was offset by a stronger US dollar. The publication further noted a stronger US economy–which has impacted the gold prices in recent weeks–could likely result in a rise in interest rates later this year.
Looking over to the silver prices, the white metal rose steadily for the first half of the week before dropping off heavily on Thursday and Friday. Despite the sharp incline late in the week, the white metal still made gains over the five-day period. As of 1:57 p.m. EST on Friday, the silver price was $17.47 per ounce–an increase of 0.23 percent.
Despite the small gains, Investing.com suggests the silver prices’ near and-long term outlook “could be rather bearish going forward.”
On the base metals sector, copper prices continued its sharp decline over the five-day period, dropping 0.64 percent. By Friday, the metal was $2.10 per pound as of 2:00 p.m. EST.
The Economic Calendar reported Thursday that the copper price had extended its decline to eight sessions, in part as the US dollar rose to a multi-month high.
Lastly, spot oil prices appeared to be on the rise early in the week, but dropped off on Friday. Still, the oil price gained 1.16 percent over the five-day period. As of 2:00 p.m. EST on Friday, oil prices were $50.65 per barrel.
Reuters reported on Friday that US oil rigs increased by 11 over the week, the 17th week without a decline in the rig count. The publication noted the last time US oil rigs rose by more than 10 was in August, when there were 15 additions the week of August 15 and 10 the following week.
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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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