Gold gains 5% in a week, its best since August
In short
- Gold rose 5.0% in the week to 6 November, from $3,875 to $4,071 an ounce, its best week since August.
- The biggest jump came on Wednesday after the US midterms (+3.3% on the day); falling oil added 1.8% on Monday.
- On HawkValue’s data the move is +4.5% in dollars for the week.
Gold ended the week up about 5%, its strongest since August, despite a small dip on Friday after the US jobs report. The metal is back above $4,000 an ounce after hitting 12-month lows at the end of October.
What happened
FMV Gold data for 30 October to 6 November shows gold up 5.0%, from $3,875.20 to $4,070.59 an ounce. Silver added 5.7% (from $49.13 to $51.94), platinum 7.3% and palladium 4.4%. All four metals finished the week higher.
Wednesday was the biggest move. After the midterms, Democrats won both the House and the Senate, the dollar weakened and Treasury yields fell. Gold jumped 3.3% on the day. FMV quotes analysts who argue that divided government makes new federal borrowing harder to pass.
On Monday crude oil fell more than 7% and gold added 1.8%. On Tuesday US strikes on Iran’s Qeshm Island pushed Brent back to about $106 and gold slipped 0.4%. Friday brought the jobs report: 165,000 new jobs and unemployment at 4.1%. The odds of a December Fed hike rose to about 77%, and gold lost another 0.4%.
HawkValue’s own series, which uses a different cut-off time, shows $3,898.91 an ounce on 30 October and $4,074.90 on 6 November, or +4.5%.
What it means for you
One good week is no signal for the next. It does show how fast the value of a holding can change: gold reacts to interest rates, the dollar and the news.
The maths: 100g of gold was worth $12,535 at spot on 30 October and $13,102 on 6 November, $567 more. The cheapest 100g bar, at SD Bullion, costs $13,314.45, which is $213 (1.6%) over spot. The weekly move was 2.7 times the dealer premium.
Compare bars and coins on the US gold prices page or see the gold price chart.
Bottom line
Gold finished the week up about 5% on the US midterms and cheaper oil, and Friday’s jobs data only cooled it slightly. The next marker is US consumer prices on Tuesday at 8:30 a.m. New York time.
Sources: FMV Gold · FinanceFeeds
Gold prices at US dealers live →
For information only. This is not investment advice.
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