The gold market recovered last week from the slightly low gold prices the previous week presented. The new data that came from Europe, Asia and America caused a considerable improvement.
How did gold prices evolved last week?
The beginning of the week started with a slight decline of the price of gold to $1,216 per ounce mainly due to the rise of European stock markets. On May 9th, investors were very much enthusiastic about gold in Asia. Xue Na, analyst at Nanhua Futures, declared the following:
"Buying gold bars as an investment is a good way to guard against risk. The introduction of property purchase restrictions in recent months has boosted demand for gold."
On Wednesday 10th, gold prices recovered to $1,224 an ounce after US President shocked experts in politics by dismissing the FBI's director. In addition to that, the geopolitical tensions between North Korea and South Korea as well as China and the US are said to be supporting the precious metal together with a stronger demand for gold in India.
The following day, Western stock markets declined together with the European government bonds, while commodities increased. This maintained gold at $1,224 per ounce. However, gold priced in British pounds rose that Thursday 11th. In fact, according to the World Gold Council, “London needed an extra 24.5 tonnes of gold in April as investor interest expanded.”
Gold prices amounted to $1,231 an ounce ahead of the weekend, as Brent crude oil increased its value above $50 per barrel on May 12th. No further changes were detected on Monday 15th, when gold remained at $1,231 per ounce.
New economic data from the US appears to be more negative than expected: the dollar has been clearly pressured over the weekend. Helen Lau, analyst at Argonaut Securities, said at the end of the day that:
“The data seems to be pointing to a weakening trend in the US economy. The appeal of precious metals as safe haven assets has raised.”
The world's investors take refuge in gold.