Gold futures prices closed the week on a cumulatively bullish note amid prevailing macros, though it was unable to show clear direction to gold traders.
For the week to week though, Gold futures were up 0.7% while spot gold gained 0.5%.
U.S. gold for December delivery closed at $1947.9 per ounce, losing up to 0.8% at its last trading session. It had however gained over $27 in three previous sessions. Notwithstanding that, the precious metal remains far below its record highs of nearly $2,090 hit on Aug 7.
Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Basevibes, spoke on the precious metal, with vital insight on the macros prevailing. He said:
“Gold seems to have set a bottom and is still trading with a high correlation to US equities.
“I expect interest and volatility to fade a bit, as there has been a fair amount of hyperactivity in the past month. I still think we test $1910 next week as the markets get spooked by positive vaccine news and a not-so-dovish September FOMC.
Flow-wise, there is extraordinarily little buying interest from real money accounts and some tentative selling from fast money.”
Quick fact: Gold is mainly used for making jewelry, physical coins, and in recent times, for industrial purposes. Humans are emotionally and physically drawn to gold. It provides a significant store of value. Global Investors buy gold to hedge against inflation.