Gold prices report on 2nd May
The world's stock markets increased their gains on April 25th after the first round of France's presidential election, and gold prices started last week with a slightly higher value: $1,268 per ounce.
Gold bullion imports to China increased to almost 112 tonnes that day: the highest level since May 2016 and almost twice the amount of February 2017. Other factors have contributed to the overall demand for gold too:
"An improvement in Indian demand has played a role. And a rise in geopolitical fears has also clearly played an important part in the price increases, and encouraged investment flows."
specialist analyst Ross Strachan from Thomson Reuters GFMS.
On Wednesday 26th, gold was priced at $1,262 per ounce as European stock markets and commodity prices fell. However, even though gold prices decreased a bit from the previous day, they rose 4.3% in Dollar terms since January 2017. The US Dollar increased its value too when the President announced his tax reforms.
On the other hand, the experts from the Chinese bullion bank ICBC Standard declared the following: "April is likely to be as good as it gets for gold in Q2."
On Thursday 27th, the Dollar rose and the world's stock markets dropped. Meanwhile, gold cost $1,263 per ounce. "Gold has shown an impressive recovery to reach trend lines at $1,290; and is now likely to show a rebound," says the latest technical analysis from the French bank Societe Generale.
Friday 28th brought the most positive data of the week: the gold market enjoyed gold prices at $1,267 per ounce, rising 1.4% together with the demand to buy it, favoring a strong balance between buyers and sellers in the market.
Gold priced in Pounds also recorded its highest monthly value since October; and prices to buy gold in Euros were also the highest since September 2016.
After the weekend, markets closed for holiday in most of Asia and Europe. However, some details could be revealed about gold: prices increased slightly from the previous day at $1,271 per ounce. In summary, May 1st saw the value of Dollar falling while gold prices were little changed.
Edward Meir, analyst at the financial services company INTL FCStone, concluded the week with these words:
"We see gold maintaining a relatively higher trading range in May as tensions with North Korea will command more attention now that the bearish impact of the French election is out of the way."
The world's investors take refuge in gold.