After last week’s five-day rally, the price of gold hit some bumps this week but still never slipped below the $1,160 mark. Monday opened on a three-day losing streak, prompted by Friday’s mixed economic data and a stronger dollar. Despite the short rally, the yellow metal failed to break above the $1,200 benchmark last week.
The dollar slipped on Tuesday after the euro rose on solid European lending data, and gold regained some energy. Investor appetite for gold trading, as well as physical gold, is bolstered despite the waves in the market. Swiss gold exports to Hong Kong and China were the highest in a year and a half.
The gold price mid-week stayed nearly flat, but Friday saw movement again as an economic report showed stronger-than-expected manufacturing data. Early in the day, gold prices rose ahead of the expected economic data but dipped in the afternoon to close the week out at slightly below $1,165.
October overall has been so far a solid month of gains for gold, closing out this week 4.5% higher than the beginning of the month. The next Federal Reserve meeting is scheduled for next week, October 27 and 28. A rate hike in December seems unlikely according to investors watching the market but is still possible.