After another five days of quick rallies followed by nearly just as many drops, gold ended the week up (believe it or not) – last quoted at $1202.10/ounce at 7pm according to Kitco. Friday, precious metals prices finally broke out, hitting 3-week highs thanks to a surprise interest rate cut in China and bullish news coming out of Europe.
“People will buy gold as a hedge, since it is clear that China wants to stimulate growth,” Miguel Perez-Santalla, a sales and marketing manager at Heraeus Metals New York LLC, told Bloomberg. “Also, we are seeing a rise in physical demand.”
Many other factors played a role in precious metal prices this week as well. Here are a few of this week’s biggest stories:
- Following Germany’s lead, the Dutch bank made the stunning announcement this week that they want their gold back
- Reuters broke the news that a newly created industry body called the World Platinum Investment Council will embark on a mission to drive up platinum demand starting next year.
- Next week’s Swiss gold referendum has everyone on edge, and analysts have practically spent most of the week debating over whether or not the measure will be passed. Find out what the optimists and the pessimists have to say to form your own opinion. Or you can just wait until next week…
- Ukraine’s Central Bank admitted that all but 1% of its gold reserves are gone, saying “there is almost no gold left.”