The gold price had no good weekly closing after the yellow precious metal had to give up a good 1% on Friday and closed at $1,785.00 per ounce. Thus, gold ends this week with 1.21% in the red, but over the month gold stands 3.6% in the plus.
The drop on Friday came after the inflation figures which showed that inflation continues to rise. The PCE price index rose 0.3% from August and 4.4% YoY. In addition, employment costs are rising by a full 1.3%.
As inflation figures rise, the likelihood that the Federal Reserve will start tapering the QE program in November becomes higher and higher. The Fed meeting on Wednesday will provide more information about this.
Inflation numbers are also running hot in Europe as inflation showed a rise to 4.1% YoY, up from 3.4% in September. However, the ECB will maintain its loose monetary policy, the ECB had announced this week.
With dwindling purchasing power in Europe and the U.S., it is becoming increasingly important to protect against rising inflation. Gold has been an object of value for thousands of years and offers a very good alternative to protect against dwindling purchasing power. Those who want to participate in the gold market with leverage can do so with shares of gold producers. The shares fell victim to a real sell-off this year, but this is exactly the time when experienced investors strike. How did the shares of gold producers perform this week?
Gold Mining Stock Performance
Top Performer:
K92 Mining Inc. (TSX: KNT): K92 Mining Inc. is a gold producer headquartered in Vancouver Canada. The company operates a gold mine in Papua New Guinea.1
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