Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Gold recovers some of last week losses, then falls again

Gold recovers some of last week losses, then falls again

Gold prices rose slightly Wednesday, but fell shortly after and they continue to be far from the highs they hit right after Donald Trump won the US presidential election last week.

The metal is actually hovering close to a six-month low of around $1,230 an ounce as better economic data made a December rate increase by the US Fed more likely. The drop was also fuelled by a rise of the dollar, which climbed to a fresh 14-year high against a currency basket.

According to comments made by St. Louis Federal Reserve President James Bullard “a single policy rate increase, possibly in December, may be sufficient to move monetary policy to a neutral setting,” the WSJ.com reports.

He also said the short-term outlook for monetary policy is unchanged following Donald Trump’s win in the White House race.

Gold for December delivery was last up 0.3% at $1,228.50 an ounce on the Comex division of the New York Mercantile Exchange. Gold is now down more than $103 an ounce after an initial surge on Tuesday last week, as results showed a likely Trump victory.

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