Monday’s gold prices opened the week slightly lower since Friday, influenced by continuing mixed signals from the Federal Reserve. Despite Janet Yellen’s statement last week not to increase interest rates, some members of the Fed are outspoken about pushing this agenda forward, citing an improved economy even amid global tumult. This week it was Eric Rosengren of the Boston Fed who said monetary policy could tighten sooner than expected.
The gold price made some headway Tuesday as equities and oil prices across the world fell, lending credence to the safe haven mentality of gold. Greece also regained some attention with more uneasiness about paying back loans. Gold fell one percent on Wednesday as the equity market righted itself. Profit-taking was also featured.
The yellow metal flew upwards again on Thursday, above $1,240 per ounce, hitting a one-week high. The general market sentiment is that the Fed won’t raise interest rates in the near future. The minutes from the last meeting were released mid-week, drawing more attention to this prediction.
By Friday, gold had pared some gains but the price held steady near two-week highs. The gold market seems to be trading sideways overall. Not much movement occurred this week, as it seems that traders are waiting for something to happen.