Gold prices rose gradually last week as concerns over the US political landscape increased. Experts said positive words about the performance of the precious metal, which also included promising forecasts.
What influenced the rise of gold prices last week?
While our last week's report on gold prices concluded with gold at $1,231 per ounce, the precious metal traded at $1,234 per ounce the next day, May 16th. This is a moderate rise resulting from another rise in the world's stock markets, commodities and crude oil.
Gold prices jumped again to $1,245 on Wednesday 17th, when the US dollar fell sharply as the scandal between the country's president and the FBI director kept expanding. Due to this, interest rates also fell while government bonds gained and commodities rose. Steven Barrow, strategist at the Chinese bank ICBC Standard, said: "We think it is clearly a case of Euro strength over Dollar weakness; strength that's likely to continue for the near-term at least."
The US dollar kept on weakening on Thursday 18th and Asian and European stock markets fell too, while gold prices amounted to $1,264 per ounce. Gold prices in China also rose that day. A headline at Bloomberg added: "Gold's haven status refreshed as Trump's turmoil wounds stocks."
With the US president's team under investigation, on May 19th gold was priced at $1,253 per ounce and the world's stock markets recovered a bit.
"Uncertainty surrounding political developments in the US is likely to keep the dollar under pressure over the short-term and this should support gold."
Note from Swiss bullion refiners and finance group MKS Pamp
After the weekend, gold prices increased slightly again to $1,257 an ounce. On Monday 22nd, Asian stocks gained but the political concerns in the USA are expected to keep supporting appetite for the metal as a safe-haven asset. Another note from Germany's Commerzbank confirmed this fact:
"In a market environment characterized by high risk aversion, gold appears to be in demand again as a safe haven at present."
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