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Prices for silver and copper also rose this week, thought oil prices sank Friday on news from OPEC.
It’s been a topsy-turvy week for the gold price.
While the yellow metal was changing hands at over $1,070 per ounce early in the week, it took a hit Wednesday after US Federal Reserve Chair Janet Yellen made comments suggesting the central bank will raise interest rates at its December meeting. That day, COMEX gold for February delivery settled at $1,053.80, the lowest since February 5, 2010.
Since then, gold has fared better. It was boosted Thursday by news that the European Central Bank has cut its deposit facility to -0.3 percent from -0.2 percent, leaving its main refinancing rate steady at 0.05, and rose further on Friday. According to Kitco, Friday’s price rise has been attributed “to short covering helped by expectations that even if the Federal Open Market Committee hikes U.S. interest rates later this month, monetary policy will remain accommodative for some time.”
Explaining that idea, Kevin Grady, president of Phoenix Futures and Options, told the news outlet that while most people expect the Fed to raise rates he “think[s] the language people are anticipating is that it’s going to be soft.”
As of 1:37 p.m. EST the gold price was trading at $1,084.55.
The silver price’s movement this week largely mirrored that of the gold price. As of 1:37 p.m. EST on Friday, the white metal was sitting at $14.50 per ounce, just down from its highest point this week so far.
On the base metals side, the struggling copper price saw some relief on Thursday on the back of a weaker US dollar and optimism over recent cuts in Chinese supply. The Wall Street Journal states that COMEX copper futures for March delivery were changing hands at $2.041 per pound that day, up 0.4 percent.
Finally, oil prices sank Friday after OPEC announced plans to roll over its policy of maintaining crude output in order to maintain market share. According to CNBC, market watchers had largely expected OPEC to stick to that policy, which is now a year old. The group will next meet in June to reassess its policy, though it’s possible an early meeting could be triggered.
CNBC states that the announcement sent US crude down 2.3 percent, to $40.12 per barrel. Meanwhile, Brent crude was down 1.1 percent, at $43.35. Earlier this week, Brent sank to $42.43, not far from a six-and-a-half-year low seen in August.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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