Weekly Round-Up: Gold Drops to Three-week Low

Despite dropping to a three-week low on Thursday (February 9), gold had a relatively strong week, soaring to $1,242.20 an ounce on Wednesday.

Thursday’s fall was the result of a stronger US dollar and a rise in equities, MarketWatch says. Even so, the yellow metal was on the rise again by Friday, and by 1:06 p.m. was at $1,232.50 – a 0.16-percent increase over the five-day period

“A good portion of the bullishness in gold this last several weeks has been a result of the general belief that the Trump rally moved too high, too fast,” Adam Koos, president of Libertas Wealth Management Group, told the publication.

Silver, gold’s sister metal, climbed to a near 12-week high early in the week. Its increase came on the back of technical buying and moderate expectations that interest rates will rise, Economic Calendar notes.

The white metal also made strides on Friday, climbing from $17.58 an ounce to $17.84 as of 1:10 p.m. EST. Economic Calendar suggests that silver is on pace for a weekly gain of 0.7 percent, while year-to-date its price has increased 10 percent.

On the base metals side, the copper price was pushed up this week on the back of looming supply disruptions at the world’s two largest copper mines. Forbes notes that by Friday LME copper was at $6,083 per tonne, its highest level since June 2015.

Spot oil prices also had a strong week, and are moving toward their strongest finish in roughly five weeks.

OPEC members have “delivered more than 90 percent of the output cuts” they promised last month, CNBC says, and as of 2:00 p.m. EST Friday, US crude was at $53.93 per barrel. That’s a 2.49-percent increase from the start of the week.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article. 

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