The best week of the 6 months for gold with gains of 2.9%

Gold closed with gains in the last session of the week, extending its positive streak for the seventh day, while at the same time it recorded the largest percentage increase on a 5-day basis since May.

“Inflation is a real fear and this is reflected in the price of gold,” said Adam Koos, president of Libertas Wealth Management Group.

The rise of the US dollar creates a short-term resistance to gold, Koos told MarketWatch. However, “with the Federal Reserve and Washington raising more liquidity, this uptrend could change direction at any time, with the dollar falling.”

The prices of the precious metal also found support in its “dive” consumer confidence for November, with the relevant index falling to a low of 10 years, as announced today. In particular, the University of Michigan Consumer Confidence Index slipped to 66.8 points based on the initial measurement for November, from the final measurement in October to 71.7 points.

This week, gold, silver and platinum “held big splits, offsetting higher-than-expected inflationary pressures in both the US and China,” Colin Cieszynski, an analyst at SIA Wealth Management, told MarketWatch. .

“Investors are worried that rising inflation is not going to be temporary, with commodity prices rising, wages rising and supply chain disruptions causing shortages,” Cieszynski said.

“Normally, rising consumer prices would provide support for the precious metal. However, the gap in market expectations regarding interest rate timetables between the Fed and other central banks creates room for further dollar gains.” “It looks like the Fed will start raising interest rates in 2022, while in other countries the picture is not so clear,” RicTo Evangelista, an ActivTrades analyst, wrote in a note.

“This scenario is likely to continue to support the US dollar and therefore curb the uptrend in gold,” he wrote.

The US dollar fell 0.1% on Friday, but strengthened significantly by 0.8% on a weekly basis, according to the ICE US Dollar.

In this climate, the December delivery gold It strengthened by $ 4.60 or almost 0.3% on Friday, to reach the price of $ 1,868.50 per ounce. This is the highest level for the precious metal since June 11. The 7-day uptrend is the longest after a period of 9 consecutive gains, which ended on July 29, 2020, according to Dow Jones Market Data.

In weekly basis, gold recorded gains of 2.9%, in its highest percentage rise since the 5-day period ended on May 7.

As for the other metals, the December delivery silver climbed 5 cents, or 0.2%, to $ 25,346 an ounce. In the week, silver gained 4.9%.

THE December delivery copper added 1.1% to $ 4.45 per pound, with weekly gains of nearly 2.5%.

The January delivery contract for platinum fell 0.5% to $ 1,089.20 an ounce, but gained 5.2% on a weekly basis. The palladium for delivery in December rose 2.7% to $ 2,117.70 an ounce, up 4.4% on the week.