Gold remains in sound early form

Amid the markets’ wait-and-see attitude, the week’s gold prices were once going strong and reached their highest level since last April in US dollars. At US$ 1,949 per ounce, they also only just missed the 1,950 US$ mark.

There was no clear driver for almost persistently friendly investor sentiment. Government bond yields had again come under some pressure midweek, alongside a mostly weaker US dollar. Investors are likely laying low in anticipation of the impending interest rate decisions, with the Fed scheduled for next Wednesday and the ECB and Bank of England next Thursday. The week’s market movements were therefore more restrained than over the first three weeks of the year. They are likely to revive next week.

Weekly roundup: gold in US dollars

While gold traded at 1,931 US$ per ounce early last Friday, it slid to the previous weekly low of 1,911.50 on Monday afternoon. After some volatility, it re-claimed its nine-month high of 1,949 on Thursday night, but soon weakened to 1,920, weighed down by profit-taking and yesterday’s yield recovery. This morning at 8:00, the precious metal traded at 1,925 US$ per ounce.

Xetra-Gold: weekly high on Tuesday

The Xetra-Gold price remained relatively static and slightly below last week’s eight-month high of 57,30 € per gram. It opened the new week at 56,55 and reached its weekly high on Tuesday at 57,40. This morning, it was expected to kick off trading at around 56,90 € per gram.

With the end of the Chinese New Year celebrations, Asian markets should revive in the coming week, and the interest rate meetings of the central banks of the US and UK as well as the ECB should give the markets direction.

I wish all readers a relaxing weekend.