The price of gold opened at $1,264.94 on Monday and closed at $1,256.60. Tuesday saw gold prices that fluctuated little from their $1,254.60 open. The gold spot price chart reported that the yellow metal was selling for $1,249.78 on Wednesday morning before closing at $1,238.00. Thursday’s trading followed a similar pattern to Tuesday’s, with gold prices staying within pennies of $1,227.75 all day. Light buying on Friday brought the price of gold up from an opening of $1,227.68 to close at $1,228.01.
Many observers predicted a correction in gold prices, and the move to interest-bearing holdings amid expectations of a Fed interest rate increase in June placed more downward pressure on prices. However, the reported weakness in the dollar fuelled gold buying, which lifted prices. 1
Some analysts attributed the week’s lighter trading to concerns over the outcome of the French presidential election on Sunday, May 7, specifically fears that candidate Marine Le Pen would win. Investors favored candidate Emmanuel Macron. Gold prices have already started to rebound since his victory yesterday 2.
This week investors will be watching the announcement of China’s trade balance on Monday and the release of U.S. consumer price data on Friday. The news from China will be evaluated to see if there is reason for concern or new confidence in the direction of the country’s economy. The question of whether inflation is on the rise will bear on June’s FOMC rate deliberations.