[28 February – 06 March 2017] Weekly gold prices report
On Tuesday, 28th, gold prices were little changed. They held above $1,250 per ounce as the world was waiting for the US president to speak to the Congress about his fiscal plans. But they did change quite a bit on the next day.
March, 1st had sharp movements in the market due to that first speech. Gold prices dropped beneath $1,240 after the announcement that the dollar interest rates are going to rise at this month's central-bank meeting.
However, gold prices in euro held firmer than those in dollar. In fact, Tom Kendall, from the bullion clearing bank ICBC Standard, declared the following: "It would not be a surprise if European investors were increasing their allocations to gold."
On Thursday, 2nd, gold prices remained practically the same. The prices in dollar stood at a $1,240 level, but the prices in euro fell. This fall in gold prices was mainly attributed to a stronger dollar and the expected rate rise in March in the USA.
However, gold prices in dollar didn't take long to fall: on Friday, 3rd, they dropped to $1,225 per ounce because Janet Yellen, Federal Reserve chair, gave a speech on the outlook for the increase in interest rates.
After the weekend, experts affirmed that gold prices will consolidate since their lower value is attracting sufficient buying. Actually, gold prices held stable on Monday, 6th at $1,234 an ounce. The rising geopolitical tension over North Korea and a weaker dollar resulted in a lot of gold buying as a safe-haven asset. And it will continue.
The whole world takes refuge on gold. Stay fast on your feet.