The price of gold recovered overnight losses after the release of US Federal Reserve meeting notes in London trade Thursday morning, rising back to $1375 as major stock markets also rose with commodities.
Wholesale gold edged back from last week’s two-month closing high on Monday morning, recording its best London Gold Fix since 18th June above $1375 per ounce. World stock markets slipped, with Indonesia dropping 5.5%, as major government bond prices also fell, driving interest rates higher.
The Fed knows that the US economic recovery remains very fragile which is why it has completely backtracked on talk of reducing its asset purchases. The fact is QE will go on until the market, not government, puts a stop to it.
The price of wholesale gold fell back to $1320 per ounce Wednesday lunchtime in London as new data showed the US economy expanding faster-than-expected. Second quarter GDP rose 1.7% in real terms from a year earlier, the Bureau of Economic Analysis said.
Wholesale gold rallied from a drop to $1310 per ounce Thursday lunchtime in London, gaining as world stock markets also cut earlier losses. Trading back above $1322 – a two-year low when hit by April’s gold crash – spot bullion also rallied 1.0% for Euro and Sterling investors.
London prices for physical gold held little changed Monday morning, edging lower from the best weekly finish in three as new data showed China’s economic growth slowing but retail sales rising sharply.
Both silver and gold slipped in London on Friday morning, edging down to $1271 per ounce and $19.80 respectively. European equities pushed higher while the US Dollar rallied and major government bond prices rose.
The dollar price of gold dropped $20 per ounce lunchtime Friday in London, briefly dropping through $1220 per ounce after the release of June’s US non-farm payrolls data. Non-farm payrolls growth came in at 195,000 against consensus forecasts of 165,000.
The price of gold rose in Asia and jumped at the start of London trade Tuesday, hitting $1267 per ounce to recover 40% of last month’s crash before easing back. Prices for silver bullion also rose, but lagged gold’s rate of gain, before slipping back below last week’s finish at $19.69 per ounce.
The price of gold rose hard in Asian trade Monday morning, extending Friday’s strong rally, but slipped back in London to start the third quarter of 2013 with an AM Fix of $1243.50 per ounce. That was 26% below New Year for US Dollar investors, 21% down in Sterling, and 25% lower in Euros.
Gold bullion fell back towards $1230 per ounce Thursday morning in London, having ticked higher in earlier Asian trading, as stocks and commodities were little changed on the day and the Dollar was also flat after showing little reaction to yesterday’s downward revision for US economic growth.