October saw a modest increase in the gold price, after September’s more notable fluctuations. Opening prices on the 1st October were £956.05 for a troy ounce, before upwards momentum kicked in pushing the closing price for the month to £964.55 on the 30th, an increase of 0.89 per cent over the month. Prices peaked on the 12th October at £985.80.
Global tensions push up gold price
Prices rose in the first week of October, from the seven-week low they’d hit at the end of September, as geopolitical tensions in North Korea and Iran boosted safe-haven buying. Prices reached £980.86 on the 9th October, retreated slightly on the 11th, then reached the October height of £985.80 on the 12th, in anticipation of further news about US inflation rates.
Dollar advances, gold retreats
After the 12th, prices took a general downwards trend although temporary peaks were recorded of £984.31 and £980.99 on the 16th and 19th of October respectively.
The 23rd October saw further retreats, at £965.19, a two-week low, following a strengthened dollar in response to the re-election of Japanese Prime Minister Shinzo Abe.
The price continued to decline through the rest of October, hitting £964.55 on the 30th. Although the gold price did rise briefly on the 28th to £971.38 amid the political concerns in Spain surrounding the Catalonia region.
Prices on the 30th October marked an overall price increase of 0.89 per cent since 1st October.
Economic outlook – a good time to sell gold?
October also revealed some poor economic data for the UK. Weak productivity and growth were recorded as well as a falling exchange rate for Sterling against the dollar of 1.59 per cent across the month.
If you’ve been affected by the negative economic outlook and need to access cash quickly, now could be a good time to sell gold during the modest price rise. UKBullion offer excellent rates for gold coins, gold bars and gold jewellery. Find out more about how to sell gold on our website.