Gold prices report on 27th November
1g. 33.99 EUR
1oz. 1057.00 EUR
Price in EUR per kg
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Gold prices report on 27th November
Global InterGold

On Tuesday 21st, the market was influenced by the situation in Germany. Investors kept an eye on the political crisis and Angela Merkel's statements about the urge for new elections.

Leader of the "Alternative for Germany" party Alexander Gauland:

“Merkel has failed, it’s time for her to go.”

Many German politicians believe that the country is in such an uncertain situation which was last felt about 70 years ago.

A gold ounce was worth $1,280.

On Wednesday 22nd, Fed Chairman Janet Yellen announced the need to gradually tighten the policy.

Janet Yellen:

“Temporary factors probably explain low inflation in the US, while prices should recover next year.”  

Gold cost $1,292 that day.

On Thursday 23rd, German President Frank-Walter Steinmeier met the leader of the Social Democrats (SPD) Martin Schulz. The result of this meeting was the consent of the Social Democratic Party to hold negotiations on the government formation.

SPD Secretary General, Hubertus Heil:

"The SPD will not say no to discussions"

President of the European Commission Jean-Claude Juncker claimed the need to complete the first stage of negotiations with the UK on Brexit. As you know, leaving of the EU will cost the UK 45 billion pounds.

Jean-Claude Juncker found it difficult to answer the question whether the country has such funds and is ready to imply them:

“I'm not crazy enough to give an immediate answer to your question.” 

On Thursday, the US markets were closed due to Thanksgiving; the price of a gold ounce rose to $1,290.

On Friday 24th, the dollar was under pressure against the background of data on low inflation in the US. The optimism of Americans over the economy in November backed down, though the confidence of European buyers increased. Investors were anticipating another rate hike.

Gold prices stopped at $1,288 at the end of the week.

On Monday 27th, the euro continued to grow amid the settlement of the situation in Germany. This week, negotiations will be held with the participation of Federal Chancellor Angela Merkel and German President Frank Walter Steinmeier, SPD leader Martin Schulz and chairman of the Christian-Social Union (CSU) Horst Seehofer.

At the beginning of the week, the price of gold rose to $1,290.

Jim Rickards, lawyer and best-selling author of “Currency Wars” and “The Death of Money” believed that the Fed can “catalyze a major gold rally” and expects one ounce of gold to reach $10,000 further on.

Ole Hansen, head of commodity strategy at Saxo Bank, noticed that in times of record high equity markets and constantly growing bond yields, gold has shown it resistance. 

Ole Hansen:

“Gold for now looks caught between less favorable macro indicators on one hand and a world where political risks have been rising. Into this confusion, gold has so far managed to find support and we maintain the view that the risk/reward remains skewed towards higher prices.”

He expects gold prices to reach $1,325 by the end of the year.

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Published: 28.11.2017
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