Gold continues sideway trend
Market report Michael Blumenroth – 24.11.2017
Weekly market report
Compared to the previous week, Gold prices have risen slightly. The increase however pales in comparison to other commodities such as palladium, which has firmly established itself above the 1,000 US$/ounce mark at its 16-year high.
Yesterday’s Thanksgiving holiday in combination with today’s Black Friday means that many US traders and investors are taking the long weekend off, which is slowing down trading activity.
This will most likely change in the upcoming week, when news of the US tax reform will hopefully give an indication as to whether it even stands a chance of passing. In other news, we will have to wait and see what the central banks have in store. Both the Fed and ECB have their next meetings scheduled in December, giving us a chance to catch a glimpse of their plans for next year’s monetary policy.
As already mentioned, the gold price has meandered along this week, climbing from 1,282 US$/ounce last Friday to its weekly high that same evening, of 1,297 US$/ounce. On Monday evening, a countermovement set in, possibly due to the firmer US dollar and strong stock markets, to a weekly low of 1,275 US$/ounce. Gold has since staggered between the two extremes. Due to weaker stock markets, the gold price reached 1,295 US$/ounce on Wednesday evening. Currently, gold trades at 1,291 US$/ounce.
Given the firmer euro against the US dollar, the precious metal’s rise has been somewhat meeker in euro. From 35 €/gram last Friday, Xetra-Gold rose to 35.30 €/gram on Monday before dropping back to 35 €/gram. It currently trades at around 35.05 €/gram.
Please note that the next market report will be published in two weeks as I will be absent next week. But let’s not forget to celebrate the ten-year anniversary of Xetra-Gold, which is coming up next Wednesday, on 29 November.
I wish all of our readers a wonderful weekend.