GOLD PRICE NEWS – The price of gold advanced on Tuesday as it looked to snap a three-session losing streak. The spot gold price rose by $10.14, or 0.6%, to $1,657.44 per ounce this morning as dip-buying emerged in the precious metals space. The SPDR Gold Trust (GLD), the world’s largest gold ETF and gold price proxy, climbed by $0.93, or 0.6%, to $160.36 per share.
Silver jumped in conjunction with the price of gold this morning, by $0.17, or 0.6%, to $30.36 per ounce. While precious metals headed north, most gold and silver stocks followed the broader equity markets lower. The Philadelphia Gold & Silver Index (XAU) slid 0.4% to 159.49 while the S&P 500 Index dropped by 0.5% to 1,454.61.
Among gold and silver stocks, notable decliners on Tuesday included XAU components AngloGold Ashanti (AU), Coeur d’Alene Mines (CDE), and Randgold Resources (GOLD). Shares of AU retreated by 1.8% to $29.32, CDE by 1.4% to $23.18, and GOLD by 0.8% to $93.31.
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Today’s rally was a welcome respite for gold investors, who have endured a particularly difficult stretch of late. Last Friday the price of gold fell to $1,626.03, its lowest level since mid-August.
Commenting on the recent weakness in gold prices, Deutsche Bank analyst Daniel Brebner wrote in a note to clients that “It looks like we are in a period, whether sustainable or not, of some stability, and this is resulting in the moribund performance of the gold price. That potentially could continue over the next quarter or two.”
However, Brebner went on to say that “We’re not out of the woods yet, and there is still much that the world economy needs in terms of support from monetary policy…The whole debt situation remains a major challenge, and accommodative monetary policy is very much seen as a way to minimize the negative repercussions of that.”
Accordingly, the Deutsche Bank analyst contended that “I don’t believe the gold story is over, but certainly, the market is likely to continue to pause.”
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