Weekly Round-Up: Gold Price Soars on US Election Fears
The gold price rallied above $1,300 again this week on US election uncertainties.
Gold prices climbed above $1,300 an ounce for the first time in over a month after the Federal Reserve announced interest rates would stay the same, at least for now.
As the US election approaches, a weaker US dollar were other contributing factors as to the yellow metal’s price increase. As of 1:34 p.m. EST on Friday, the gold price was $1,302.70–a 2.35 percent increase over the five-day period.
On Friday, Bloomberg reported that a Donald Trump lead in opinion polls overtook Hillary Clinton, which also contributed to the gold price rally.
“Election fears and a weaker dollar was what helped push gold back above $1,300 this week,” Jens Pedersen, an analyst in Europe told Bloomberg. “At the same time, the market is looking for a rate hike later this year, though we think the Fed will wait until March.”
Looking over to the silver prices, the white metal was also on the rise over the five-day period, increasing 3.09 percent over the five-day period.
On Friday, the Economic Calendar noted that the white metal was able to stay strong despite firm US employment data. As of 1:41 p.m. EST Friday, the silver price was $18.34 an ounce.
On the base metals sector, copper prices also rallied over the five-day period–reaching a three-month high–on US jobs data results indicating its economy was heading towards an eighth year of expansion.
Other reports suggested the price rally came as a result of the continued weak US dollar and positive data from Chinese manufacturing activity.
As of 1:50 p.m. EST, the copper price was $2.26 per pound–an increase of 2.54 percent.
Lastly, spot oil prices continued its sharp decline due to disputes between Saudi Arabia and Iran. The disagreement between the countries is fueled by slicing production by the Opec group. In particular, Saudi Arabia has threatened to increase its oil production if Iran doesn’t cap its output.
With that in mind, as of Friday at 1:50 p.m. EST, oil prices were $43.90 per barrel–a decline of 6.12 percent over the five-day period.
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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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