Written by Gold Money Dealing Desk
From the GoldMoney Dealing Desk --
The gold price was mainly steady this week after troubles in Egypt sparked a raft of safe haven buying. Gold reached $1,367/oz on Tuesday and stayed near this figure until Thursday afternoon when U.S. employment figures knocked $10 off the price. Weekly jobless claims in the U.S. rose less than expected, improving the economic outlook and boosting the dollar. Gold did manage to stay above $1,350 however, even with a stronger dollar to contend with and physical buying low after Chinese New Year.
Commerzbank analyst Eugen Weinberg told Reuters on Thursday: "We are still very bullish in the longer term and believe new all-time highs are very possible towards the end of the year. But at the moment, gold seems to not be the favourite. During economic recovery, other metals are in stronger demand."
Market opinion seems a little torn this week. While the stronger dollar and signs of an improving economy are holding gold back from making any major gains, investors seem reluctant to place any large sell orders, hinting at expectations of higher prices and lingering economic worries. Further protests are expected in Egypt on Friday, and if the situation turns violent it could stir up markets and prompt investors to move back into gold.
Silver was mostly steady this week. Gradually rising from Monday up to a peak of $30.50/oz on Wednesday. After this initial rise silver fell off slightly, as profits were taken and a stronger dollar weighed on metals. Silver went into Friday at just over $30/oz and the gold to silver ratio was at its lowest in almost 5 years at 45.
Platinum and palladium both reached multi-year highs earlier this week as improving economic conditions boosted demand forecasts. Platinum reached $1,865/oz on Wednesday, it's highest since July 2008, but soon fell off to around $1,830. Palladium rose to a 10 year high at $837/oz, before being dragged down by around 2% to $815.
All data and quotes sourced from Reuters.