Gold futures this week closes lower, as investors were attracted by strong equity markets on the back of solid economic fundamentals, which turned out to be better than predicted. Moreover, the strong USD, oncoming to a six-week high against the euro, added to that undermined bullion’s safe-haven appeal.
On Monday, the begging of the last week, gold futures began at $1,447.70 per ounce, opening higher after last Friday’s close of $1,436.60. Exactly after the market opened gold reached its weekly high of $1,448.30. The yellow metal dropped as low as $1,368 on Thursday, it’s lowest in four weeks. Bullion ended the week at $1357.70.
The S&P 500 ended the week 1.98% higher at 1,666.12. Commodity markets are flowing by the performance of equities that again hit a record high on Friday.
The Asian market Nikkei 225 index showed a great performance as well, it increased more than 2.5% the last week.
The S&P 500 and the Dow Jones have increased more than 15% so far in 2013, posting record highs among global optimism. In contrast, gold entered a bear market in April, decreasing 15% in 2013.
The USD has increased again to the highs seen in July 2012. The dollar index has been going through an increase since February, and was traded at 84.272 at 4:10:00 PM EDT on Friday, showing the currency in an uptrend this week active by 1.31%.