Gold Prices Climb for a Sixth-Straight Day to Gain Over 5%

12 Nov 2021 · 3rd Party Analysis

Gold Prices Climb for a Sixth-Straight Day to Gain Over 5%


In Summary:

  • Gold prices gain over 5% in a six-day winning streak as inflation prompts investors to seek safety
  • The precious metal reaches a six-month high at $1,869 per troy ounce

What’s Trading in the Markets?

The price of gold has been accelerating to higher grounds over the past six straight days. As a result, the precious metal has gained over $90, or more than 5%, to reach a six-month high of $1,869. Presently, the price of gold hovers near $1,860 per ounce as it has retreated slightly from its recent top.

That said, traders and investors have chosen to rotate to gold amid increased inflation pressures. In more detail, another consumer price report, this time for October, showed prices continue to climb higher.

In October, specifically, US inflation rose 6.2% compared with the same month a year ago. That was the quickest price jump in over three decades, going back to 1990.

While the short-term is positive for gold, longer-term it remains pressured. Since January, for example, the precious metal is in the red by 2%. In other words, gold today is about $40 below its opening price for 2021. To this end, the gold market, with a valuation of nearly $12 trillion, is still waiting for its breakout moment this year.

What’s Bitcoin Doing Today?

In the crypto space, the most valuable token, bitcoin, is keeping steady near $65,000 per coin. As the week is coming to an end, the orange coin is on pace to log its seventh-straight week in the green.

Crypto traders, however, are looking ahead to an exciting weekend. More precisely, the crypto community is about to witness Bitcoin’s first major upgrade in roughly four years. The makeover, called Taproot, is due for release in the next couple of days.

On this note, elevated volatility could define the next hours in bitcoin trading. Moreover, bitcoin is about 6% away from its record high of $69,000 set Wednesday.

A few important elements of the Taproot upgrade include improved efficiency of the Bitcoin network and cheaper transactions. In addition, the changes will also bring better use of smart contracts, a key feature of blockchain technology.

Meanwhile, the price of Ether, the second-biggest cryptocurrency, is trading at unchanged levels around $4,720. The Ethereum token this week reached its all-time high of $4,860 per coin.

Dive Deeper in the Financial World

In stocks and pairs, relatively calm trading is unfolding in the early hours of Friday, ahead of the US session. The US dollar extended its gains against a weaker euro and a struggling sterling. More specifically, the EUR/USD dipped below 1.1450, a level last seen in July 2020.

The GBP/USD, on the other hand, gravitates toward the area of 1.3350 to 1.3400. Despite better-than-expected GDP data for the UK, the British pound remained muted. Nevertheless, the UK economy grew by 0.6% in September from the previous month.

Stocks on Wall Street, in the meantime, finished mixed with the S&P500 and the Nasdaq Composite in positive territory. Today, the futures market indicates a slightly higher open for the benchmark stock indexes.

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