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Though the resource sector has been hit hard as of late, gold has been making some small gains, climbing up from lows reached in late September. This week, the yellow metal is up 1.4 percent overall, despite dipping slightly on Friday as stocks recouped some of this week’s losses.
As the Globe and Mail reported, “the Toronto stock market has been moving deeper into correction territory and has been in danger of giving up all year-to-date gains.” The publication noted that even with Thursday’s gains, the TSX is still down 10.25 percent since hitting a record high on September 3.
Feeling the brunt of the correct has been the resource sector. Still, gold has been making some small gains, climbing up from lows reached in late September. This week, the yellow metal is up 1.4 percent overall, despite dipping slightly on Friday as stocks recouped some of this week’s losses. On Friday, US gold futures were down $7.10, trading at $1,234.10 per ounce, according to Reuters.
“Gold has had a good week because just about everything else has had a bad week,” Macquarie analyst Matthew Turner told Reuters. “The rally has paused today, however, as the wider markets are wondering whether things really are quite as bad as they thought they were yesterday.”
Silver also dipped on Friday, falling 0.2 percent or $0.03 to trade at $17.29 per ounce.
Meanwhile, copper rose from six-month lows on Friday, up 0.4 percent or $26.31 at $6,578 per tonne, after a week of heavy losses, according to Reuters. While copper recovered slightly, the metal is still at risk, particularly given a 17.5 percent increase in weekly copper inventories in Shanghai.
“The demand environment doesn’t look good, and everyone knows in copper there’s a lot of mine supply coming,” Colin Hamilton, head of commodities research at Macquarie, told Reuters. “That was a big build of stocks in Shanghai today and you can see copper underperforming.”
Copper for December delivery on the Comex in New York rose 0.5 percent to trade at $2.9975 per pound, according to Bloomberg Businessweek.
Brent crude oil for December delivery rose $0.43 on Friday to trade at $86.25 per barrel, reported Reuters, but the commodity is still headed toward seven-day losses for the fourth week in a row.
“Prices have likely overshot to the downside,” Jeffrey Currie, head of oil analysis at Goldman Sachs, told Reuters. “This leaves us near-term constructive despite being bearish as we look further out.”