2,000 US$ per ounce mark in sight

As expected, the US Thanksgiving holiday had a dampening effect on market activity, with most market participants likely preparing for a long weekend on Wednesday afternoon and a low tendency to open new positions.

Last week’s market movements were mostly a continuation of the previous week. Following a successful auction  of long-dated US Treasury bonds, yields continued to fall temporarily to a significantly lower level than a fortnight ago. The more risk-averse sentiment provided a tailwind for the stock markets but weighed on the US dollar. The euro temporarily rose significantly above the 1.09 US$ per euro mark. These factors combined to support gold prices over the course of the week.

Strong euro slows down Xetra-Gold

Last Friday, gold traded at 1,981 US$ per ounce in the morning. Echoing the previous week’s development, gold prices dropped to a weekly low of 1,966 on Monday. On Tuesday, however, they quickly regained the 2,000 mark, with a high of 2,007.50. With yields rising slightly thereafter and the US dollar recovering somewhat, gold prices slackened. This morning, the precious metal traded at 1,994.

The Xetra-Gold price slowed slightly due to the continued rise of the euro against the US dollar. Trading at 58.80 € per gram last Friday, its weekly low on Monday was 57.80. After recovering to 59.20 on Wednesday, Xetra-Gold started trading today at 58.70.

Focus on US yields and central bank meetings

In the short term, the development of US yields is likely to have a significant influence on the gold price. In the coming week, month-end dispositions could be decisive, and in mid-December, market participants will be attentive to the various central bank meetings.

I wish all readers a relaxing weekend and will be back in touch the week after next.