The majority of November saw comparative stability in the gold price, followed by a dramatic fall in prices in the closing days of the month. But even with the change in fortunes in the final three days, overall, November 2017 demonstrated the least variation in a month in gold prices against the dollar in 12 years.
Over the course of November, the price of gold fell by 2.33 per cent, from £962.94 on the 1st, to £940.38 on the 30th. The biggest fluctuation occurred during the 27th and the 30th, where gold lost 2.18 per cent of its value in three days.
Gold price inches up at the start of November
Gold hit its highest point in three weeks on the 8th November at £981.44 for a troy ounce of gold, rising from its starting price of £962.94 on the 1st. Uncertainty about upcoming US tax reforms weighed on the dollar, thus pushing up the gold price. Palladium also tracked impressive gains during the same week, hitting its highest value in 16 years.
Through the coming weeks of November, the dollar continued to stagnate, and gold prices rose gradually.
Dollar and Sterling bounce back
The latest US growth figures were released in the last few days of November, which revealed better than expected US growth. The dollar was thus strengthened from its slump, and the gold price fell dramatically between the 27th and 30th of November. Gold lost 2.18 per cent of its value against the dollar in this three-day period.
Back in the UK, reports that a ‘divorce bill’ settlement had been reached with the EU improved expectations that a trade deal could be agreed, which in turn bolstered Sterling against the Dollar. Gold fell even further against Sterling, down to £940.38 on the close of November.
With three steady weeks, the end of the month certainly proved interesting for investors. As December gears up, the gold price remains on a decline, although it remains to be seen whether recent developments in the Brexit talks will impact the markets as the UK and EU have once again failed to reach an agreement.
At UKBullion, our gold bars and gold coins are priced in line with the market gold price, so fluctuations will change the prices on our site accordingly. Take a look at our range of gold coins and gold bars today.