After the tragic events in Paris on Sunday, gold responded with a short-lived climb up the charts. Gold generally sees increased attention during times of worldwide crisis, and investors return to the yellow metal as a haven of safety when other economic indicators are in flux. True enough, after terrorists tragically killed more than 100 people in a widespread attack on Paris Sunday, gold contracts were trading in the range of 3,000 lots rather than the 300-lot average from the past two months.
The price of gold rose slightly Monday but did not continue its momentum throughout the week as the focus still remains on the upcoming Federal Reserve rate hike. Prices fell again to a six-year low on Tuesday as dollars and stocks recovered from temporary setbacks after the Paris attacks. The FOMC meeting scheduled for mid-December is still the primary market influence currently.
Wednesday saw gold prices continue a downward trend after San Francisco Federal Reserve chief John Williams made a statement in favor of raising rates in December. This trend continued through to the end of the week when gold closed out about 0.6% lower than the start of the week, its fifth consecutive week of losses. Next week, the major news item will be third quarter GDP reports.