Gold prices dropped last week, but the experts have carried out several analyses that point gold out as the focus of attention in these times of geopolitical and financial uncertainty.
But, what happened exactly during last week? Find out.
The week started with gold prices being above the $1,200 level. However, the figure of $1,214 an ounce on Tuesday, 24th January, was already lower than that of the previous week. The fall was caused by UK Supreme Court having confirmed that the British Parliament will trigger the start of Brexit.
The fall in gold prices continued on Wednesday, 25th January, getting even closer to $1,200 per ounce. The dollar fell that day too as the USA president spoke about his policy of reducing immigration. Bloomberg News quoted Swiss bank UBS's wealth-management team in Singapore in that respect and reported the following:
"We have a negative US Dollar view, [so we are] advising clients to consider gold as a hedge against [what is about to come].”
Thursday, 26th January saw gold prices fall below $1,200 in the market, but an analysis by specialists in Thomson Reuters GFMS revealed that regardless of the European elections and the emphasis on the Eurozone currency, there is a growing likelihood of gold bars becoming the preferred safe haven asset.
On Friday, 27th January, gold was priced at $1,181 per ounce and the US currency continued to weaken, but gold prices remained at a higher value during Saturday, 28th and Sunday 29th, January: $1,191 an ounce.
The present week has started, though, with rising gold prices. Gold had risen to $1,193 per ounce on Monday, 30th January. Its prices are supported by a weaker dollar and the uncertainty over the outlook for US policy. This fueled safe-haven demand. ANZ analyst Daniel Hynes adds:
“We’ve seen a rise in the amount of safe-haven buying in the past few weeks around the critical uncertainty in the US and Europe”
The current events are leading investors to opt for gold. Do not stand still.