Gold prices started the week on a positive note, opening at $1,282.21 on Monday before some profit taking took the closing quote to $1,280.90. Aftermarket selling resulted in a Tuesday opening of $1,269.79, but gold buying picked up and the day closed at $1,271.73. This trend continued into Wednesday, which opened with the price of gold at $1,272.36 and closed at $1,283.94. That bid was bested in afterhours with a high of $1,288.88 before the Thursday opening of $1,285.66. With growing support, the close for the day was notched at $1,288.96, setting up expectations for Friday’s activity. The psychologically significant $1,300 price per ounce of gold was surpassed with the opening bid of $1,301.80. The day closed with gold prices up for the week at $1,284.13.
Political and economic problems spur the purchase of safe haven assets. The news of continued threats of nuclear war from North Korea and terrorist attacks in Spain accounted for strong gold buying last week. 1 At the same time, these events caused the stock market to take a dive and for many analysts to predict a market correction.
The coming week has two potential trigger points for the gold market. First, the U.S. existing homes sales data will bring signals of the economy’s strength. More importantly to observers, the Jackson Hole Economic Policy Symposium of will be held Thursday through Saturday. This meeting has been used in the past to announce shifts in economic and monetary policies, and Fed Chair Janet Yellen and European Central Bank President Mario Draghi are scheduled to speak to the attendees on Friday. Their comments are certain to be carefully parsed for insights to the remainder of the year’s monetary activity.