What a hard week for precious metals! Silver and palladium are on a monthly minimum. What about gold’s performance?
At the beginning of the week, the conflict in Asia and the upcoming speech by the Fed Head, Janet Yellen, supported the price of metals.
However, statements by William Dudley, president of the Federal Reserve Bank of New York, had a negative impact on stable assets. He argues that the main indicators of the US economy are becoming sustainable:
“Although the damage wrought by Hurricanes Harvey, Irma, and Maria has imposed immeasurable hardship on many and will undoubtedly disrupt commerce for a time, these effects are likely to be relatively short-lived in the context of the overall economic outlook.”
On Tuesday 26th, gold prices stopped at $1,294 per ounce.
The next day, on Wednesday 27th, the precious metals markets were also under pressure. The reason for this is Janet Yellen's tough statement about the gradual increase in interest rates despite the instability of inflation.
As for precious metals, Edward Meir, commodities consultant at INTL FCStone, said:
“A more muscular U.S. dollar and lack of fresh geopolitical worries have pushed precious metals lower.”
The price of gold fixed at around $1,282.
Under the influence of the dollar, precious metals continued to decline on Thursday 28th. However, gold and palladium showed growth.
Gold ETF’s reserves increased, which supported the yellow metal. In the exchange funds, no changes occurred with other metals.
Edward Meir again commented on the prices of metals in the world market:
“Gold is having a “disappointing” week so far. “Silver followed suit and hit a one-month low yesterday, as did platinum, ending close to a two-month low."
The Metal Focus consulting agency provided data on retail jewelry consumption in China in the first half of 2017. According to the agency, it decreased by 3.6% compared to the same period in 2016. The most demanded are products with complex designs, as well as products from 18-carat gold and precious stones, which supports the gold market.
Gold prices rose to $1,286.
On Friday 29th, precious metals markets grew mainly due to the fall of the dollar.
Throughout the week, the dollar supported by the statements of Janet Yellen and Donald Trump’s speech concerning tax reform which implies the reduction of taxes. However, people doubt that the idea will be easily adopted by the US Congress, which had a negative effect on the exchange rate.
The prices of reliable assets were also consolidated by the report on the European economy from representatives of the European Central Bank. They said that the stimulation of the economy will be adjusted but never stopped. However, in October it is expected that the ECB will announce a reduction in the incentive program.
These factors had a positive effect on gold prices: the yellow metal stabilized at $1,280.
Over the weekend, the gold market subsided, but recovered on Monday. On Monday 2nd, one could trace how gold prices were growing after the weekend on the website of the largest Canadian gold dealer, kitco.com.
On Monday morning, the price of gold reached the lower limit of $1,273, but recovered to $1,279 by midday and keeps rising
It's time to accumulate gold reserves on the eve of price increase!
Enhance your financial security.