Gold Price

Gold Coins Steady From Prior Week, Track Lackluster Weekly Gold Performance

Written by Economic Calendar     October 29, 2016    

Gold futures closed higher on Friday after  experiencing a late session bounce on renewed safe have demand following the news that the FBI was reopening its probe into US presidential candidate Hillary Clinton’s emails.

Prior to the news, gold seesawed between gains and losses. When FBI Director James Comey told Congress that the FBI had reopened its probe into Clinton’s emails, gold climbed, and settled up 0.6% at $1,276.80 per ounce. It was a lackluster performance over the week, but enough to push gold to its highest close since Oct.3. The bounce was also enough to keep gold in the black over the week. The yellow metal’s weekly advance was 0.7%.

While gold has been pressured on the expectations for a Fed rate hike by year end, and a relatively strong US dollar, uncertainty over the upcoming US election has been a positive factor for gold’s safe haven appeal. With Clinton the perceived front-runner in the election, the reopening of the investigation has sparked some major uncertainty over the fate of the election.

In addition, on Friday gold garnered some support from a decline in the value of the US dollar. The greenback fell by 0.6% on Friday, but the currency is still up 3% so far in October.

The lackluster movement in gold this week translated to little activity in the gold coin market.

Last week we saw premiums rise compared to the prior week for the first time in awhile, but this week premiums were, largely, steady. On Friday, premiums on American Gold Eagle coins ended at $57.06, one week ago they were at $57.10. Premiums on American Buffalo coins ended at $58.33 versus $58.37 in the prior week, and Canadian Maple Leaf finished at $44.38 compared to $44.41.