Precious metals traded higher early in the session today, but took a tumble later on. Meanwhile, copper and Brent crude prices held the gains they made this morning.
Gold rose to nearly $1,320 an ounce October 18 and is set to make its biggest weekly gain in two months, Reuters reported. The rise was the result of expectations that the US government shutdown would lead the Federal Reserve to postpone tapering of its stimulus program.
“We’re now focusing on two things: the next time we’ll have a debate on the (debt ceiling) issue, which is February, and tapering,” Citi analyst David Wilson said. “The debate has moved on from if to when (tapering will happen), so that will be continually factored into the gold price.”
Unfortunately, investors cashed out of gold, believing higher prices would limit demand for the metal. As a result, gold prices fell later on Friday, with futures for December delivery down $7.90, to $1,315.10 an ounce.
Positive economic growth data from China helped copper prices today. China’s economy grew 7.8 percent in the third quarter. The country is the largest consumer of copper, accounting for about 40 percent of world demand, as per Reuters.
Benchmark three-month copper rose $14.49, to 7,245 a tonne, on the London Metal Exchange today.
Brent crude prices were also up today, rising above $110 a barrel. A weak US dollar and China’s positive economic data helped push prices up, Reuters said. Prices increased to $110.24 a barrel earlier in the session, before falling slightly to $109.31 — still up $0.20 from the previous session.