Weekly Metals: Gold Relapse on Profit Taking

Weekly Metals Gold Relapse on Profit Taking

Gold briefly continued its upward movement commenced earlier this week, rising to its highest level in five weeks, before falling short of profit and a stronger dollar, thus attenuating the turbulent markets.

“Gold, and to a lesser extent silver, have been victims of profit taking after two weeks of gains. The rebound in equity markets, coupled with a slightly stronger dollar, caused sales,” said Ole Hansen, analyst at Saxo Bank.

The yellow metal has made good progress since the beginning of October, the same amount Tuesday at its highest level in five weeks (1 255.37 dollars an ounce). Gold particularly benefited from the turmoil in the financial markets last week, the precious metal is seen by investors as a safe haven.

But this turbulence rather subsided this week while the dollar climbed slightly higher, which weighed on commodities priced in the US currency (by making them more expensive for investors with other currencies provided).

“The prevailing idea is still on the market that the dollar will restart its ascent and therefore represent a headwind for precious metals,” said Hansen.

For their part, the PGMs also recovered this week, especially palladium, which benefited from movements cover short positions, analysts said.

On the London Bullion Market, an ounce of gold finished at $1,232.75 at auction Friday night against $1,234.25 the previous Friday.

The ounce of silver closed at $17.19, against $17.36 seven days ago.

On the London Platinum and Palladium Market, an ounce of platinum finished in $1,254, $1,259 against seven days earlier.

The ounce of palladium finished for his part at $784 against US $753 at the end of the previous week.

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