This Friday at the end of the afternoon, the ounce of gold traded for 1,729.51 dollars, against 1,708.17 dollars seven days earlier at the end of the session.
The price of gold rose over the week, rebounding in the last two sessions on concerns about the global economy.
Fall in manufacturing activity in the industrial region of Philadelphia in July, rise in jobless claims: disappointing US indicators allowed gold to take off.
“If there are even clearer signs of recession in the United States, it would give momentum to gold,” said Han Tan, an analyst at Exinity.
But the yellow metal was starting from very low, since it had melted on Thursday to less than 1,700 dollars per ounce, its lowest since March 2021.
In recent months, investors looking for safe havens have favored the dollar and US government bonds, two assets galvanized by the successive tightening of the Federal Reserve (Fed).
The market is now wondering if the tight monetary policy can be maintained even in the event of a recession.
“If investors anticipate fewer rate hikes for one reason or another, it will be favorable to gold,” said Craig Erlam, analyst at Oanda.
But Mr. Erlam like Mr. Tan advise to be wary of the Fed’s meeting next week, a determined message from the monetary institute to fight against inflation that could cause the yellow metal to plunge again.
Around 3:45 p.m. GMT (5:45 p.m. in Paris), an ounce of gold traded for 1,729.51 dollars, against 1,708.17 dollars seven days earlier at the end of the session.
Nickel goes up the slope
Nickel prices rallied this week on the London Metal Exchange (LME), benefiting from support from China, as the metal recovered from an almost 10-month low reached last week despite a market on -stocked.
According to Carsten Fritsch, analyst at Commerzbank, the main reason for this new momentum is a “general recovery”, as the market now seems to be in surplus, which should weigh on prices.
On Monday, China called on banks to extend more credit to developers, struggling due to the growing number of owners who refuse to pay their monthly payments, contributing to aggravate the crisis in real estate.
“Chinese markets seem to be interpreting the call as an impetus to support the real estate market,” said Jeffrey Halley, analyst at Oanda.
Industrial metals like nickel and aluminum reacted higher, “suggesting markets believe government intervention is about to unlock the construction sector” in China, the analyst said.
Indeed, some groups are struggling to continue their construction sites and to deliver housing units sold before their construction in due time.
On the LME, a ton of nickel for delivery in three months traded at 22,125 dollars on Friday around 3:45 p.m. GMT (5:45 p.m. in Paris), against 19,385 dollars the previous Friday at the close.
sugar drop
Sugar prices fell over the week, weighed down by the erosion of demand due to high prices, while supply recovers.
The market is “now more worried about demand after the recent strength in prices,” says Jack Scoville of Price Futures Group.
According to this analyst, fears about the lack of sugar supply have now faded into the background, with Brazil and India forecasting good harvests.
Lower oil prices due to concerns about a slowing global economy have also made ethanol production less attractive.
Usually, high oil and fuel prices encourage producers to turn part of their harvest into ethanol, which reduces the amount of sugar on the market and drives up prices.
In New York, a pound of raw sugar for October delivery was worth 17.97 cents, down from 19.25 cents seven days earlier.
In London, a ton of white sugar for delivery in October was worth 525.10 dollars against 598.60 dollars the previous Friday at the close.