In brief: on Wednesday morning the price of investment gold stood at about €118.55 per gram – slightly lower than yesterday (€118.98/g). Over the past two weeks gold has fallen by about 3% in euro terms, while on the global market the price per ounce is holding around USD 4,130.
What moved the price?
- Rising oil prices. Oil prices are again being pushed up by supply risks in the Middle East, with reports of attacks on tankers in the Strait of Hormuz. More expensive oil raises fears of inflation and higher interest rates, which usually puts pressure on gold.
- High US bond yields. US government bond yields remain close to multi-decade highs. When bonds pay more, gold – which pays no interest – becomes less attractive to investors.
- Fed expectations. After weaker-than-expected September labour market data, the market expects the US central bank most likely to leave interest rates unchanged this month (probability of around 80%).
What is supporting gold?
Russia’s Ministry of Finance announced that from 7 October to 6 November it will increase its purchases of foreign currency and gold fivefold, to 279.4 billion roubles (about USD 3.3 billion). Analysts describe the USD 4,100 per ounce level as an important support zone.
What does this mean for buyers?
At Royal Gold, investment gold prices are updated in real time according to the exchange, so today’s change is immediately reflected in the prices of our gold bars and gold coins. If you have any questions, call +370 625 08993.
This review is for information purposes only and is not investment advice.
Sources: Trading Economics, GoldPriceZ, CaptainAltcoin.