Wholesale gold bullion prices hovered just below $1,670 an ounce Monday morning in London, having regained some ground after Friday's losses, while stocks and commodities also ended the morning up on the day.
Spot gold traded nearly flat on Monday in Asia and has edged higher as investors nervously await a string of economic data this week to examine if the grand money printing recovery plan is working for the world's top economies.
The final session of the week saw gold dipping sharply as a mild revival in the US dollar’s strength prompted speculators to lock in short-term profits and sel. Friday morning’s low was touched at $1,655 after the yellow metal lost nearly $20 an ounce and fell below its 200-DMA once again.
Wholesale gold bullion prices dipped back below $1,670 an ounce Friday morning in London, 0.9% up on where it started the week, after jumping 1% yesterday following the European Central Bank's decision to leave interest rates on hold.
Precious metals also responded very favorably to Draghi’s comments this morning. Gold futures are up around $21 today while silver futures are up over 2%. Besides precious metals, natural gas is one of the stronger commodities on the board.
Gold inched higher on Thursday, as market watchers await a rate decision by the European Central Bank at 12.45 GMT. European Bank Chief, Mario Draghi’s news conference is at 1330 GMT. The Bank of England continued ultra-loose monetary policies today by keeping interest rates at 0.5%
The big surprise this morning was that the US jobs figures…surprised to the upside, and then some. Gold prices promptly fell by as much as $18 (all the way back down to $1,682) in the wake of the report that showed US unemployment falling to 7.7%.