A good year for gold

There are still a few trading days ahead of us. By and large, however, the trading floors in London and New York are more or less deserted with the holidays ahead and Christmas preparations in full swing. In terms of the week’s market activity, there is not much to report. The markets continue to expect “major” central banks to enter the interest rate reduction cycle next year. For the first time since March, yields on ten-year Bunds are back below the 2.00 per cent mark. Ten-year US government bonds are yielding around 3.87 per cent, the same level as at the end of July and no longer significantly higher than at the beginning of the year. The week saw a sell-off of US dollars and the euro/US dollar exchange rate traded around the 1.10 mark this morning. 

Gold in US dollars up 13 per cent

Last Friday, gold traded at 2,037 US$ per ounce in the afternoon. Over the course of the week, it rose step by step. Last night, gold traded at a weekly high of 2,055 and kicked off trading this morning at 2,050. At the beginning of the year, investors paid only 1,820 US$ per ounce; gold has thus risen 13 per cent over the course of the year, whereas most other precious and industrial metals have only gained slightly or in some cases (platinum, palladium, nickel) suffered significant price losses. 

Xetra-Gold: 9 per cent above first price in 2023

Xetra-Gold was again held back somewhat by the slight appreciation of the euro against the US dollar, trading at 59.65 € per gram last Friday and briefly regaining the 60.00 mark at the start of the week before returning to the weekly low of 59.45 on Tuesday. This morning, trading was likely to start at 59.95. The first price at the beginning of the year was 54.90 – an annual increase of around 9 per cent.

Some economic data expected from the US today bears the potential of causing moderate market movement, but overall, the trading year has most likely come to a close. Year-end planning could dominate the coming week before the markets turn their attention to the US labour market data on 5 January. 

I will also be taking a break next week, back with a fresh report on 5 January. I wish all readers a happy, joyful, and relaxed Christmas and a good start to 2024!