Gold Prices Face Worst Month in Years

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gold pricesThin trading on Thursday did little to help gold’s precarious position as the precious metal faces the possibility of seeing its worst month in three years in November. High hopes for a trade deal between the U.S. and China have sent traders away from safe-haven assets like gold, and into riskier assets and dollar-based offerings. Gold prices are down almost 4 percent in November, the worst decline since November 2016. Gold prices were down for six consecutive days before gaining slightly during Friday’s Asian session. Gold futures were trading at $1,464.10 per ounce as of 2:53 p.m. HK/SIN.

Gold prices have been fluctuating significantly in recent weeks and months each time there is news about a possible trade deal between the U.S. and China. When optimism is high, gold prices immediately drop, but when traders are concerned that the deal with crumble, they immediately run back to safer assets. Gold prices have gained nearly 13 percent in 2019 thanks to the ongoing trade war. 

Asian benchmarks were broadly lower on Friday, following a day of silence on Wall Street as markets were closed for the Thanksgiving holiday. The declines came after a day of losses on Thursday, prompted by new trade fears after U.S. President Trump confirmed two pro-Hong Kong bills into law.

Japan’s Nikkei 225 was down 0.49 percent in the mid-afternoon, while Australia’s ASX 200 was down 0.26 percent. Hong Kong’s Hang Seng Index plummeted 1.93 percent, and South Korea’s Kospi was 1.45 percent lower. Both of China’s benchmark indexes, the Shanghai Composite and the Shenzhen Composite were also in the red.

Sari Holtz began working at DailyForex in 2011 when she was hired to provide daily news analysis and to manage the daily content. Since then, she has continued to provide regular news items that focus on how political events impact the global economy. She also works directly with dozens of Forex brokers worldwide to ensure that they get their messages across and that traders can find the best broker for their individual needs.