Gold futures experienced a downward trajectory on Friday (Nov. 17), signaling a corrective trend and profit-taking by investors, following a robust surge witnessed in the preceding session.
The price of gold futures saw a decline of $2.60, equivalent to 0.13%, ultimately closing at $1,984.70 per ounce by the end of the trading day. Despite this dip, gold prices managed to notch a weekly gain of 2.1%.
In the metals market, silver witnessed a decrease of 8.10 cents, marking a decline of 0.34%, concluding at $23.852 per ounce. Similarly, platinum futures experienced a dip of $1.10, a decrease of 0.12%, ending at $901.70 per ounce. Contrarily, palladium futures showcased an uptick, climbing by $9.30, equivalent to 0.89%, to close at $1,058.90 per ounce.
The decline in gold prices on Friday was largely attributed to investors capitalizing on profit opportunities. Typically, gold, considered a safe-haven asset, encounters selling pressure when concerns surrounding potential government agency shutdowns or disruptions diminish. The signing of a temporary budget bill by US President Joe Biden averted these concerns, relieving the immediate pressure on gold investments.
Furthermore, the surge in gold prices by over 1% on Thursday, underpinned by a weakened dollar and declining US bond yields, prompted investors to take profit positions. Expectations of the Federal Reserve potentially concluding its cycle of interest rate hikes added to this market sentiment, stimulating profit-taking behaviors.
Moreover, the US Department of Commerce’s report on Friday unveiling a higher-than-expected surge in home starts in October, reaching 1.372 million units, alongside a 1.1% rise in home construction permits to 1.487 million units, also played a role in prompting investors to offload gold contracts. These positive figures in the housing sector potentially diverted investor attention away from gold’s safe-haven allure.
The combined factors of profit-taking, corrective market tendencies, and positive economic indicators contributed to the slight decline in gold prices observed at the close of Friday’s trading session.
The Spot Market Closed
Saturday, November 18, 2023