Last week, gold prices experienced a small decline mainly due to the outcome of the French elections' first round, but other reasons have affected gold prices in other countries. Gold still continues to be the preferred protection against instability.
Find in this report a detailed summary of the movements of the gold market during last week.
On Wednesday 19th, gold was priced at $1,291 an ounce as the world's stock markets and commodities steadied. Apart from this small gain from April 18th, the International Monetary Fund revealed new data about Turkey. The world's No.6 gold consuming nation is increasing its demand for gold due to its growing political uncertainty and the depreciation of the Turkish Lira.
We go from Turkey to France now, whose elections still influenced the gold market by Thursday, 20th. The world's stock markets rose together with commodities, while gold experienced a slight decline to approximately $1,280 an ounce. However, a note from the German refiners and gold bar manufacturers Umicore said that gold was still mainly acquired as a safe haven asset.
Gold prices remained relatively steady on the next day, Friday 21st, at $1,286 an ounce as the world's stock markets and commodities held steady too once more. The Julius Baer Group, a global Swiss private bank for private and institutional investors, declared the following:
"Gold remains supported by elevated investor risk-awareness in view of the full near-term political events agenda."
More news came from South Korea, where a strong gold demand was noticed due to the risk of conflict between the US and North Korea and next month's wedding season. The specialists of the company Thomson Reuters commented on this fact:
"Most of the selling this month has been conducted by individual investors, choosing to take advantage of the recent price spikes to book a profit."
Back to France on Monday 24th, the Oversea-Chinese Banking Corporation analyst Barnabas Gan commented on gold prices that morning ($1,265 an ounce):
"Gold prices have fallen sharply this morning due to the improvement in risk sentiment."
However, looking at this weekend's first round of the French presidential elections, the German finance group Commerzbank affirmed that they "could trigger considerable gold demand as a safe haven asset."
The world's investors take refuge on gold.