Gold settles at 2-week peak, rises week to date
Mubasher: Gold prices climbed on Wednesday, ending at their highest level in two weeks and rising over the week to date, driven by some weakness in the US dollar.
This came a day after a rout in tech and energy shares led the Dow Jones Industrial Average index and S&P 500 index to erase gains for this year.
By 7:29 pm GMT, gold futures climbed 0.53% to $1,228 per ounce, trading up roughly 0.4% over week to date and settling at the highest for a most-active contract since 7 November, according to FactSet. Spot gold rose 0.41% to $1,226.70 per ounce.
Gold ended lower on Tuesday to halt a four-session winning streak, failing to keep haven-related support on stock sell-off.
Benchmark US stock indices jumped on Wednesday, while trading was stalled ahead of Thanksgiving holiday in the US on Thursday.
“With the lower price action in gold [Tuesday] taking place in the face of sharp declines in equities and rising anxiety, it is clear that the gold market is behaving like a classic physical commodity market instead of a safe-haven financial tool,” Zaner Precious Metals analysts said in a note.
Wednesday’s gains did not come as a surprise to the analysts, as they came “in conjunction with the recovery in global equity prices.”
“However, while the dollar is tracking lower it remains within striking distance to [Tuesday’s] sharp range up high in a fashion that leaves some currency threat against gold and silver in place,” the analysts added.
The greenback weakened against most major rivals as gold futures settled, with the US dollar index falling 0.14% to 96.7030.
The dollar traded 0.2% higher for the week, but saw a month-to-date loss of nearly 0.5%.
|AUD / NZD 1.07073 / 1.07018
|AUD / USD 0.78241 / 0.78214
|CAD / JPY 98.991 / 98.963
|EUR / AUD 1.4047 / 1.40434
|EUR / CHF 1.03539 / 1.03509
|EUR / GBP 0.70983 / 0.70968
|EUR / JPY 133.66 / 133.644
|EUR / USD 1.0988 / 1.09862
|GBP / AUD 1.97908 / 1.97857
|GBP / CHF 1.45866 / 1.45825
|GBP / JPY 188.32401 / 188.284
|GBP / USD 1.54809 / 1.54785
|NZD / JPY 88.917 / 88.871
|NZD / USD 0.73091 / 0.73062
|USD / CAD 1.22916 / 1.22887
|USD / CHF 0.94232 / 0.94201
|USD / JPY 121.655 / 121.635