Gold Price Jumps to 5-Week High as U.S. Dollar Slides

GOLD PRICE NEWS – The gold price climbed on Friday amid widespread gains in commodities and weakness in the U.S. dollar. The spot price of gold advanced by $17.48, or 1.0%, to $1,747.55 per ounce, its highest level since October 17th. The U.S. Dollar Index, a trade-weighted composite of the greenback against several of the world’s most-traded currencies – including the euro, yen, and pound – fell by 0.4% to 80.361. The SPDR Gold Trust (GLD), the world’s largest gold ETF and a proxy for the gold price, jumped by $1.75, or 1.0%, to $169.31 per share.

Silver rallied alongside the price of gold, by $0.50, or 1.5%, to $33.87 per ounce. In doing so, gold’s sister precious metal reached its best level in over seven weeks, since October 4th. The iShares Silver Trust (SLV), a proxy for the price of silver and the largest silver ETF, rose by 1.5%, to $32.79 per share.

Among other precious metals, platinum futures turned higher by 1.2% to $1,600.50 per ounce while palladium added 1.6% to $666.25 per ounce. As for cyclical commodities, copper futures advanced by 0.7% to $3.53 per pound and crude oil by 1.0% to $88.23 per barrel.

Strength in the gold price and the broader equity markets helped lift most gold stocks as well. The Market Vectors Gold Miners ETF (GDX) moved higher by 0.8% to $48.48 per share, while the S&P 500 Index added 0.8% to 1,402.34. The Market Vectors Junior Gold Miners ETF (GDXJ), comprised of small- and mid-cap gold stocks, fared better than the GDX as it climbed 1.2% to $22.37 per share.

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Within the gold sector, notable gold stocks in the black included GDX components Barrick Gold (ABX), Eldorado Gold (EGO), and Newmont Mining (NEM). Shares of ABX advanced by 1.2% to $35.20, EGO by 2.2% to $15.48, and NEM by 0.8% to $47.47.

U.S. equity markets are only open until 1pm ET today, as is the custom on the day after Thanksgiving.

Strategists at UBS discussed their outlook for the price of gold in a report to clients, published prior to today’s rally. The firm noted that “Gold is just a few dollars shy of its 50-day moving average sitting at $1,741, and more importantly, a key technical level lurking at $1,739.10…Our technical strategist notes that a break above this level, which is the month’s high, would be a crucial bullish development that would open up $1,748.95, the 62 percent retracement of the October/November sell-off ahead of $1,794.80, the October high.”

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