The price of gold opened the week strong on a weaker dollar and continued expectations of a dovish Fed, reaching an 18% growth point since the beginning of the year. The gold price touched a three-week high above $1,250 per ounce as the dollar slipped to a six-month low. Crude oil was also higher.
Tuesday followed the same trend, but gold lost its position on Wednesday as the dollar rose against the yen and equities ticked higher. Profit-taking also caused gold to backtrack against this week’s peak, and the yellow metal lost momentum through the end of the week. Wednesday featured more risk appetite in the market, U.S. stock indexes were higher, and positive economic data in China was released.
Gold fell more than a percentage point on Thursday as the dollar continued a three-day climb and world stocks reached the highest point so far in 2016. Friday saw gold stuck in a narrow trading range, around $1,230 per ounce, despite an increase in oil prices. China’s GDP was in line with expectations, which can be considered positive relative to recent downward trends.