Gold prices broke to under the pivotal $1,700 mark overnight, and did so despite a slightly weaker US dollar, despite a firmer euro, but alongside almost 1% weaker crude oil values. The decline was partially attributed to an overall slide in commodities.
Metals markets opened mixed this morning as the final session of quite an active week got underway. Spot gold was down less than $2, with a bid at $1,731 and silver was off 13 cents at $32.18 per ounce.
Spot market gold prices hovered just below $1,720 an ounce Thursday morning in London – 2.4% up on last week's close – while stocks recovered some ground and the dollar ticked higher as central banks in the UK and Europe left monetary policy unchanged.
In the early afternoon of Asian trading, gold futures rose to $1,724.30, prompted by the re-election of the US President Barack Obama. The Dollar Index traded weaker during the Wednesday morning in Asia at around 80.3.
Commodities found support in a clear resolution to the US Presidential election but the chipper mood may prove fleeting as the spotlight turns to “fiscal cliff” fears. Metals rose in Asian trade as risk appetite swelled across financial markets.
Gold is relatively unchanged on Tuesday as investors await the US presidential election results, and remain cautious with news of Greece’s two-day general strike against the new austerity package plus the upcoming Chinese leadership transition.
Wholesale market gold prices extended their gains from a day earlier Tuesday, rising above $1,690 an ounce in London this morning – 1% up on yesterday's two-month low – while stocks and commodities also ticked higher and US Treasury bonds fell.
Americans will be united in heading to the polls Tuesday to determine who they want to be the next president and vice president. After months of experts, news reporters and the candidates inundating us, voters have the last word.