The probability of the Fed hiking rates again in 2017 may not be very strong after the weak employment data. However, there’s still a strong possibility of a few rate hikes in 2018.
Gold prices dropped from its seven-week high level of $1,276.10 per ounce on August 1. Gold futures for September expiration fell 0.08% on August 2 and ended at $1,274.20 per ounce.
Precious metals once again saw a down day on Thursday, August 3, 2017, except for platinum, which rose 1.1%.
Gold has risen a whopping 1.9% over the past five trading days, while silver has risen almost 2%.
Silver is often a more volatile metal than gold. Due to its low trading price compared to gold, silver volumes could remain higher.
While gold saw a marginal fall, the other three precious metals were trading higher on Monday, July 31.
The changes in precious metals (IAU) (SLV) over the past one week have been highly influenced by changes in the US dollar, but also by the overall sentiment in the market.
Silver and palladium rose 0.5% and 0.3%, respectively, on July 27.
Gold saw its second straight day of increases on Thursday, July 27, as it hit its six-week high level of $1,266.2 an ounce to close at $1,261.5 per ounce.
The US dollar has been on a downward swing over the past week.
Gold prices fell once again on Wednesday, July 26, 2017. Gold futures for August expiration were 0.22% lower for the day, settling at $1,249.4 per ounce.
Another element that was crucial in determining the directional movement of precious metals was the two-day Federal Reserve meeting.
The DXY fell 0.58% on a five-day trailing basis, while gold and silver futures for August and September expiration rose 0.82% and 1.7%, respectively.
The fall in gold on Tuesday, July 25, 2017, was most likely due to the rise in the equities market that same day.
Gold hit a four-week high on July 24, 2017. Gold futures for August expiration touched a high of $1,259 per ounce on the day, ending up at $1,254 per ounce.
When an investor considers parking their money in haven assets and wonders whether gold or silver is the right choice, it’s a good idea to look at the spread.
July 20, 2017, was an up day for the euro, which put downward pressure on the US dollar as represented by the U.S. Dollar Index (or DXY).
Precious metals have witnessed downward pressure over the past few months due to the expectation that US monetary policy is on a tightening path.
Precious metals saw an up-day on July 20, 2017, after Mario Draghi said that policymakers would discuss potential changes in the bond-buying program in autumn.
Precious metals were on the path to recovery last week, mainly due to the fall witnessed by the US dollar. The U.S. Dollar Index fell ~1% in the week.