Gold prices marched higher Tuesday as losses in US equities and a pullback in the US dollar spurred investors’ appetite for the precious metal as a haven asset.
Gold for February delivery, the most actively traded contract, was recently up $9.40, or 0.7%, at $1,289.80 an ounce on the Comex division of the New York Mercantile Exchange.
US equities opened sharply lower amid a flurry of disappointing earnings reports and surprisingly weaker durable goods orders. The Dow Jones Industrial Average was down nearly 400 points, or 1.7%, while the S&P 500 was down 1.4%.
Earlier this week, the European Central Bank announced a larger-than-expected bond buying program that also helped the precious metals regain their value as hedges against weaker currencies.
The week’s biggest mover on the weekly Global Precious Metals MMI® was the price of Japanese silver, which saw a 9.4% increase to JPY 689.00 ($5.87) per 10 grams. This comes on the heels of a 0.2% decline the week prior. The price of Chinese silver rose 3.7% over the past week to CNY 3,820 ($608.84) per kilogram. This was the third week in a row of increasing prices. Closing out the fifth week of rising prices, the price of US silver gained 3.5%, finishing at $18.30 per ounce. At INR 40,729 ($662.90) per kilogram, the price of Indian silver finished the week 3.1% higher.
A 4.5% jump caught the week’s heaviest change for Japanese gold bullion. Closing out the third week of rising prices, the price of Chinese gold bullion increased by 1.8%, landing at CNY 260.30 ($41.49) per gram. The price of US gold bullion rose 1.6% this week, closing out the third week at $1,294 per ounce. The price of Indian gold bullion rose 0.8% over the past week to INR 28,165 ($458.41) per 10 grams. This was the third week in a row of increasing prices.
The price of Japanese platinum bar increased by a slight 3.0% over the past week to JPY 4,827 ($41.13) per gram. At CNY 271.00 ($43.19) per gram, the price of Chinese platinum bar finished the week 1.1% higher. The price of US platinum bar rose 0.2% this week, closing out the third week at $1,264 per ounce.
The price of Chinese palladium bar rose 2.4% to CNY 174.00 ($27.73) per gram after falling 4.0% during the previous week. The price of US palladium bar rose 2.1% to $773.00 per ounce after falling 4.2% during the previous week. The price of Japanese palladium bar fell 1.8% over the past week to JPY 2,926 ($24.93) per gram. This was the third week in a row of declining prices.
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The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.