In October, gold fell by 6.87% – the worst monthly result since 2008. However, in the first trading session of November, the precious metal's quotes rose by 1.1% to $3,915 per ounce, partially recovering losses after a sharp drop at the end of last week. This was reported by Qazaqyia.kz citing Kursiv Media.
According to Bloomberg, on October 30, gold fell by 3.7% to $3,870 per ounce – a one-year low. On the next trading day, investors began buying the metal at reduced prices.
Justin Lin, strategist at Global X ETFs, noted that some long-term investors consider current quotes attractive for purchases. According to him, central banks may gradually join them. At the same time, risks for the market remain.
The price drop below $4,000 per ounce led to the fact that most of the gold accumulated by exchange-traded ETF funds since mid-July turned out to be unprofitable. This concerns almost 150 tonnes of metal.
Ole Hansen, head of commodity strategy at Saxo Bank, warned that closing trades below the technical level of $3,886 leaves room for further decline in quotes. For the short-term forecast to become neutral, gold needs to return above $4,000 per ounce (currently the spot price is holding at $3,926 per ounce).
Silver rose by 1.8% in the first November trading session to $49.98 per ounce. Prices for platinum and palladium remained virtually unchanged.
Earlier, Kursiv wrote about how thousands of tonnes of gold were attempted to be secretly exported from Kazakhstan disguised as copper.