Weekly gold market report: prices from 10th-16th January, 2017
This week we find a very interesting performance of gold prices with very interesting figures too. This weekly report reviews each day's highest gold price and the main events behind.
How did the gold market behave from January 10th to 16th?
Very well, actually. Last week brought good news for gold, whose prices are now up the $1,200 level. But let's see how the week progressed.
On Tuesday, January 10th, gold reached the maximum price of $1,189 an ounce. Marex Spectron from London brokers declared that "with physical [Asian] demand picking up ahead of the Chinese Lunar New Year and investors starting to buy as the great unknown of the Trump presidency looms, gold should continue to push higher". And this was demonstrated the very next day.
On Wednesday, January 11th, gold prices rose to $1,195 per ounce being reinforced by the previous events. However, forecasts were even more positive: “[gold] will be above $1,200 over the short term", affirmed the Swiss refining and finance group MKS.
Surprisingly enough, the forecasts were right again and gold prices rose directly to $1,205 on Thursday, January 12th. Gold prices were not above $1,200 since last November. What caused this move? A weakening dollar following a disappointing press conference by US president-elect on Wednesday.
However, gold prices moved lower on the next day. The geopolitical uncertainty of the changeover of US presidents brings even greater market uncertainty. Gold prices dropped to $1,198 in Friday, January 13th, and stood at $1,197 an ounce during Saturday 14th and Sunday 15th January.
Finally, today Monday, January 16th, gold prices are “being driven by a fresh safe-haven buying” ahead of the lack of confidence in the upcoming US president, as William Adams, a Metal Bulletin analyst, said. Gold prices have gone up again above the $1,200 level: $1,206 an ounce.
According to Brian Lan, a managing director at Singapore-based gold dealer GoldSilver Central, gold will probably resist at $1,205-$1,207 or even witness a $1,220 level. He also adds the reason why: “Buying shows that people are looking ahead this week with Trump’s inauguration and discussions on Brexit. There is a lot of uncertainty moving forward.”
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