Despite its growth, gold ends up the week in minus

23.12.2016

Gold is slightly more expensive on Friday amid low volumes of trading before Christmas, and the retreat of the dollar from the 14-year high, but is preparing to finish in negative territory for the seventh consecutive week.

Gold has fallen in price by more than $200 per ounce from the peak reached immediately after the US presidential elections on November 8.

Since the beginning of the quarter, gold dropped in price by 14%, but since the beginning of the year increased in price by 6.7%, and the period from January to March turned out to be the strongest quarter in the last 30 years.

Today, gold was traded at $ 1,131.54 per ounce compared to $ 1,128.60 per ounce at the close of Thursday session.

In the US, gold futures increased by $1.6 to US $1,132.3 per ounce.

"Many traders closed their portfolios, - said an analyst at LBBW. In the absence of shocking political or economic events and amid weak demand in Asia, I would say that nothing special will occur until January, and the price of gold will be held in the neighborhood of $ 1,130. "

Gold remains largely dependent on currency fluctuations, he added. "The most important factors for gold are now the dollar against the euro, as well as real interest rates in the US."

Dollar moved half a percentage point away from multi-year highs, reached after the US Federal Reserve surprised the markets by indicating that interest rates in the next year could grow faster than expected.

"There is a risk of a further fall in gold and silver prices in the short term, because the Fed is going to raise rates more aggressively in response to Trump’s inflationary policies" – is said in a weekly review of Capital Economics.

As for other commodities, silver was traded at $ 15.76 per ounce compared to $ 15.78 at the close of Thursday session, platinum was worth $ 902.75 compared to $ 901.99, and palladium - $ 653.25 against $ 654.50.

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