Gold price rises on US economic data and the upcoming festivals in India.
Gold prices were on the rise for the second week in a row, this time on weak US economic data and demand from India.
The Wall Street Journal reported on Thursday that the data wasn’t as strong as expected and that demand for the yellow metal has gone up as the Diwali and Dhanterasm festivals in India approach.
As of 1:23 p.m. EST on Friday, the gold price was $1,274.53 an ounce.
According to Reuters, there’s an 80 percent chance the Federal Reserves will raise interest rates by December, noting that the markets may have already been impacted by the possibility of an increase. What that means is a rate increase may not necessarily weigh on the gold price as much as one may think.
Looking over to the silver prices, the white metal was also on the rise over the five-day period. Like gold, the increase in the silver price came from the festival season in India.
As of 1:26 p.m. EST on Friday, the white metal was $17.79 per ounce, putting it on track for its third weekly consecutive gain.
The Economic Calendar noted that gold and silver prices are on their way to recovery from a low month, while expectations of interest rates increasing have boosted the US dollar.
On the base metals sector, copper prices were also on the rise. FastMarkets noted its price rose for the fifth session in a row on US data results and as investors prepare for the conference in London next week.
As of 1:11 p.m. EST, the copper price was $2.19 per pound.
Lastly, spot oil prices dropped this week on expectations of an upcoming oil crash. The loss put the oil prices on pace for its biggest loss in six weeks as concerns over OPEC’s output cut and US rig count increasing over the lat few months.
As of Friday at 1:51 p.m. EST, oil prices were $49.15 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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