Weekly Round-Up: Gold Price Edges Higher on Safe-haven Demand

Precious Metals
Precious Metals Investing

The gold price inched up on Friday as investors turned to safe-haven assets.

The gold price edged higher on Friday (October 27), but was on track for a weekly loss. The Catalonian parliament’s independence declaration of Spain and the uncertainty surrounding the next US Federal Reserve Chief turned investors to safe-haven assets.
“Gold went up on the back of the Catalonia independence, but I still think its not going to last long because the dollar is still trading at high levels,” said FOREX.com analyst Fawad
Razaqzada
.
In fact, the US dollar was trading near a three-month high, hurting gold demand. A stronger greenback makes commodities priced in dollars more expensive for investors using other currencies.


But the dollar eased after a Bloomberg report pointed to US President Donald Trump leaning toward Federal Reserve Governor Jerome Powell as his pick to lead the central bank.
Powell “would be positive for gold as he is in the dovish camp,” in favor maintaining low interest rates, said Jeff Wright, chief investment officer at Wolfpack Capital. Trump is expected to announce his choice before starting a trip to Asia on November 3.
“The market is not pricing in more aggressive rate hike from the Fed even given a potential change in leadership next year. We are likely to see the same rate hike path,” ETF Securities
commodity strategist Martin Arnold said.
As of 1:00 p.m. EST on Friday, the gold price was $1,270.54 per ounce. Click here to find out more about what happened to gold in Q3 and what’s ahead for prices.
Looking over to silver, the white metal was on track for a weekly decline, trading lower earlier on Friday due to a stronger dollar. As of 1:00 p.m. EST on Friday, the white metal was $16.74 per ounce. Click here to find out more about where silver prices are going in the last few months of the year.
On Friday, palladium was down 0.7 percent trading at $961.75 per ounce while platinum was flat trading at $916.80 per ounce.

On the base metals side, LME copper ended down 2.2 percent at $6,782.50 a tonne, as a stronger dollar put pressure on most metals.

Lastly, spot oil rallied on Friday, trading above the $60-per-barrel mark for the first time in over two years, as traders are expecting OPEC to be able to balance the market and extend their supply cut deal through the end of 2018.
December West Texas Intermediate crude rose 1.4 percent to $53.38 a barrel on the New York Mercantile Exchange, while Brent crude for December on London’s ICE Futures exchange was up 1 percent to $59.90 a barrel.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
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