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

 
on November 24 2012 6:36 AM
Gold China 2
A Shanghai Gold Exchange employee stands beside gold bars displayed at the China International Exhibition. Reuters

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.

(Visit GoldAlert Pro at http://pro.goldalert.com for rankings, upgrades, downgrades and price targets on nearly every stock in the GDX and GDXJ)

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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