Open: $1,174.00 Close: $1,195.30 | High: $1,198.50 Low: $1,172.00
Gold lost 2 percent at the beginning of the week due to rising oil prices. On Monday, when crude oil prices went back up to $55 per barrel, gold suffered some losses, which also triggered some sell stops before the Christmas holiday. The dollar also opened the week fairly strong, and the stock market was doing well. Equity has been booming, which is bearish for gold.
Tuesday showed more of the same, with a largely risk-on appetite in the equity market keeping gold prices low. The U.S. economy grew 5% in the third quarter, the fastest pace in 11 years, indicating that economic growth is strong. However, Tuesday did report some gold gains as traders swept in to take advantage of the dip in gold prices after Monday’s sell off.
The marketplace was quiet for the Christmas holiday, but reopened Friday to report that gold had risen 1 percent. The dollar dropped over the holiday, encouraging gold to incur some gains. Unrest in Libya also caused crude oil to rise. The Russian ruble stabilized this week. Trading volumes during the Christmas and New Year holidays are generally thin, which may translate to dramatic movement for gold in either direction because even light trading can have an impact.