“The precious metals sector was hit the hardest (of raw materials) for the second consecutive week, with gold and silver continuing to fall,” said Ole Hansen, analyst at Saxo Bank.
The yellow metal reached a new low Friday since mid-April 2010 to 1 131.24 dollars an ounce, while silver fell on the day to $15.06 an ounce, to a minimum since early in February 2010. The PGMs have also suffered, platinum scoring lower Friday for a month (in 1187 dollars an ounce) and palladium falling Thursday at its minimum in three weeks (at $748.10 an ounce).
“After reaching $1255 dollars three weeks ago, the yellow metal has been in free fall (…). To put things in perspective, it has fallen nearly 10% over this period, which is obviously a great move,” recalled Fawad Razaqzada, an analyst at Forex.com.
“The bulk of the loss was caused by the US dollar, which climbed in the prospect of normalization of US monetary policy as central banks in Japan and the euro zone relax their policies on the contrary,” he said.
The greenback soared this week to its the highest since August 2012 against the euro for seven years against the yen. A stronger dollar penalizes raw materials denominated in the US currency by making it more expensive for investors provided with other currencies.
“The fall of gold in the second quarter of last year was finally stopped by a rise in physical gold purchases in China,” said Mr. Hansen, noting that “so far, there no signs of such a rebound in demand” in Asia.
“Without a rebound in physical demand, investors who bet down, are left in control of the market, which limits the upside potential,” he added.
On Friday, gold still managed to bounce back, “thanks to a drop in the dollar,” said Jasper Lawler, an analyst at CMC Markets.
The greenback has declined somewhat following the publication of the report on employment and unemployment in the United States, which showed a further decline in the unemployment rate in October but up less pronounced than expected for creations of new jobs last month.
On the London Bullion Market, an ounce of gold finished at $1,154.50 at auction Friday night against $1,164.25 the previous Friday.
The ounce of silver closed at $15.42, against 16.20 dollars seven days ago.
On the London Platinum and Palladium Market, an ounce of platinum finished at $1,198, 1,227 dollars against seven days earlier.
The ounce of palladium finished for his part at $ 763 against US $ 784 at the end of the previous week.