Gold Price Rebounds, Eyes U.S. Election Outcome
By jturbin | November 6, 2012 3:19 AM EST
GOLD PRICE NEWS – The gold price bounced back from further losses in overnight trading and rose by $5.78, or 0.3%, to $1,684.05 per ounce on Monday morning. The spot price of gold fell to $1,672.68 – its lowest level since late August – as Asian markets closed, but rebounded as European trading progressed. Gold prices held firm in the face of further strength in the U.S. dollar, which continued to climb against most of the world’s most liquid currencies.
Silver mirrored the price of gold, dropping to an overnight low of $30.66 per ounce but subsequently climbing back into positive territory by $0.11, or 0.4%, to $31.07 per ounce. Gold and silver stocks turned higher alongside the precious metals this morning, as the Market Vectors Gold Miners ETF (GDX) added $0.32, or 0.6%, to $50.08 per share.
(Visit GoldAlert Pro – http://pro.goldalert.com – for gold price analysis and rankings of over 90 gold and silver stocks)
Notable GDX components in the black on Monday included Agnico-Eagle Mines (AEM), Goldcorp (GG), and Pan American Silver (PAAS). Shares of AEM advanced by 2.7% to $54.32, GG by 1.6% to $43.84, and PAAS by 1.0% to $21.96 per share.
In spite of today’s modest rise in the gold price, the yellow metal has come under significant pressure over the past month. Gold prices have declined for four consecutive weeks – the first such instance since September of 2011. The price of gold has fallen victim to renewed strength in the U.S. dollar and widespread weakness in commodities and the broader financial markets.
Nonetheless, on a year-to-date basis the gold price remains higher by 7.8%. Analysts at Scotiabank noted in their latest report to clients that the price of gold is “still holding the long-term uptrend support at $1631.” They added that “there is also support at $1661.”
Looking ahead to this week, tomorrow’s U.S. presidential election is likely to be a significant catalyst for the price of gold and many other asset classes. Strategists at Commerzbank argued in a recent report that “Obama is clearly ‘favored’ by the commodities markets, mainly because of his support for Ben Bernanke and the ultra-expansionary monetary policy of the US Fed.” The firm went on to say that “any disappointment” in the markets resulting from a Romney victory “is likely to be short-lived.”
As for the U.S. economic calendar, it is particularly light this week. Gold prices showed a muted reaction to this morning’s ISM Services data – which at 54.5 came in below the 55.0 level economists were expecting. Beyond that, only Weekly Jobless Claims on Thursday and University of Michigan Consumer Sentiment are likely to be substantial market-moving items.
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Angelina Jolie & Brad Pitt’s Top Secret Wedding Tramps Jennifer Aniston’s ‘Friends’ Reunion & Pregnancy Talks [PHOTOS]
- 2014 US Open: Hottest Male Tennis Players To Watch [PHOTOS]
Join the Conversation
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display
- Leaker of Actresses Nude Photos Accepting PayPal Donations in Exchange For Posting Alleged Sex Video of Jennifer Lawrence, Has Naked Pictures of 100 Hollywood A-Listers