Gold’s remarkable price trend change between Thursday and Friday’s trading sessions gives a ray of hope to investors who are downhearted by previous week’s gold price performance. Hopefully it will be able to keep up its upward price movement given the fact that some socio political events in the market are favorable to gold.
Despite gold’s price volatility it still remains a stable and low risk safe haven investment. This is what investors are seeking for in this time of economic uncertainties, a kind of investment that does not only get them through difficult times but also offers them a great opportunity to let their investment s grow.
Here is Mike Unser giving us an overview of the current gold price trend in the precious metal market.
Gold’s Remarkable Price Trend
Gold rebounded a combined $55.30 between Thursday and Friday to spring back from its lowest price this year and eke out a 0.5% weekly gain — the first in three weeks.
Advances on Friday were largely attributed to bargain hunting and a weaker U.S. dollar which fell after its longest winning streak since 1985, a ride of gains that lasted for 14 straight sessions.
In closing Friday, gold prices for June delivery rose $17.00, or 1.1%, to $1,591.90 an ounce on the Comex in New York. The yellow metal hit an intraday low of $1,567.80 and reached a high of $1,597.50. The settlement is 3.6% higher than when gold closed on Wednesday to its lowest price this year at $1,536.60 an ounce.
Two weekly gold surveys show differing levels of expectations for gold prices next week. A Bloomberg survey was bearish for the first time in six weeks while a Kitco News survey is heavily bullish. The latter results first:
“In the Kitco News Gold Survey, out of 33 participants, 23 responded this week. Of those 23 participants, 21 see prices up, while two see prices down, and zero are neutral,” reports Kitco.
“A solid majority of participants expect prices to rally next week, especially since June gold futures on the Comex division of the New York Mercantile Exchange held the (intraday) low set on Wednesday of $1,526.70. Many said the sell-off was overdone so the rebound was in due course…
As for the Bloomberg survey, it has 13 of 29 survey participants expecting lower gold prices next week. 11 were bullish and 5 neutral.
For the year, gold prices have gained $25.10, or 2.9%.
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Despite the fact that gold had been down in previous weeks, investors and authorities are positive that gold can definitely make a comeback this week. As based from the market and industrial demands for gold, plus the natural quality of gold as a safe haven investment it is expected that gold price will rise in the coming days.
Though gold shows a very volatile pricing in the previous weeks, one must remember that the reasons that made gold a great investment and a great store of value and assets still remain.
So for those who are reluctant in investing in gold, consider those times that gold price drops as a great opportunity to invest in and store gold for future trading and use.
Indeed Gold’s Remarkable Price Trend is yet to begin.