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Sunday, December 16th, 2018 - Buy Gold - Bringing you trusted gold news and gold investing information since 2006

Gold Steadying, In Its Worst Week Since May

While gold fell as much as 2 percent in Thursday trading, Friday saw the precious metal steadying thanks to a softer dollar and a strengthening of the euro following the announcement that Greece had won approval for its five-year austerity plan.

Nevertheless, following a commodity-wide rout, bullion is now headed for its worst week since the beginning of May this year, as a result of the steep losses experienced on Thursday which were made worse by the stronger dollar.

The euro bounced back in Asia after news that Greece has come to an agreement with international lenders over an austerity plan which is said to bring the country one step closer to being able to secure its much-needed financial aid.

Analysts say that gold is expected to remain well supported as concerns about a Greek debt default still linger, and with a general uncertainty surrounding the wider global economy.

“We still are in very uncertain times and it’s likely to continue until we see greater signs of economic growth globally, particularly in the United States, and we start to see the European debt situation ease,” Darren Heathcote, head of trading at Investec Australia, said.

He added: “While those problems remain we are likely to see gold well supported. Investors flee to gold in times of trouble as they have done consistently for a very long time.”

By 0311 GMT spot gold showed little change at $1,521.71 an ounce. Bullion is down about 1 percent this week, its steepest loss since the 4 percent fall experienced in early May.

An announcement by the International Energy Agency that industrialised countries will release emergency stockpile oil in at attempt at curbing high energy prices sent oil prices tumbling to a four-month low on Thursday.

“Lower oil prices have the potential to boost economic growth, so you might expect some of the metals and other commodities used in manufacturing would look at this as a rather bullish move,” said Heathcote.

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