The gold spot price history chart indicates that the yellow metal opened at $1,304.34 last Monday and closed at $1,295.10. Gold prices opened stronger on Tuesday at $1,298.30 before dipping to $1,287.06 by the close. Wednesday opened at $1,283.09 and the downward pressure continued, with gold prices closing at $1,278.70. Thursday brought some bulls back into the market with a big jump at the open to $1,285.14 and continued momentum throughout the day that resulted in the closing price of $1,295.04. By Friday morning, the market experienced a pullback, with the price of gold opening at $1,281.11 and closing out the week at $1,280.73.
In the beginning of the week, a stronger dollar played a role in the direction of gold prices. The greenback was up against all other major currencies on Monday and Tuesday and further pressure was put on the entire precious metals complex when news broke of a possible bipartisan compromise on health care. The recovery in gold prices on Thursday came as a result of a slowdown from dollar bulls, but the Senate vote to approve a budget plan paving the way for tax cuts late Thursday contributed to the pullback on Friday. 1
Most analysts believe that gold prospects are strong closing out the year, as the likelihood of another Fed interest rate hike, rising inflationary pressures, and further political uncertainty, both in the U.S. and internationally, drive a flight to quality.