Open: $1,287.10 Close: $1,268.00 | High: $1,287.10 Low: $1,258.30
The week opened with a slow trading cycle as U.S. investors took a break from their workstations to enjoy the Labor Day holiday. Gold prices dropped slightly due to weak trading in Mumbai and some lower-than-expected economic reports in the European Union.
Tuesday saw the price of gold hit a 10-week low in inverse variation to the dollar’s 13-week high and low crude oil prices. A slew of economic reports from the U.S. also sank the metal, as the news was generally positive, indicating the Federal Reserve may head toward raising interest rates in the near future.
The price of gold recovered slightly on Wednesday. September is generally a very good month for gold, as jewelers prepare for the holiday gift-giving season and equities drop, spurring safe haven trading. Despite historic trends, market watchers are uncertain this year, as September opened on a down note.
Surprisingly, the European Central Bank announced on Thursday that they would cut interest rates and launch a quantitative easing program to boost the floundering economy. This would normally be good news for gold, and though the yellow metal rose slightly early in the day, the news had a neutral effect. This is because analysts expect the euro to lose value, which could negatively impact gold. In fact, the metal ended low on Thursday in response to the dollar climbing to a 13-month high.
The U.S. released multiple economic reports on Friday, which revealed weaker-than-expected growth. This bumped gold up a few points to close around $1,265 per ounce, still lower than when the week began.