Gold bullion market update
The price per troy ounce of gold bullion started the month at £972.22 on 2nd May, down £53.96 on the highest price seen in 2017 so far.
As we stand almost at the end of the month, things have come full circle with the price edging up and expected to rise further on the back of geopolitical tensions and associated risk. Today (May 30th) the price touched £984.01 at 09:20.
May has presented various challenges. After the French election of political newcomer Emmanuel Macron as the country’s youngest-ever president on the 8th May, the gold price dipped to £943.98 – its lowest point yet this year.
Prices rose steadily again from there to a high of £970.59 on 17th May after the announcement that Robert Nueller, ex-director of the FBI, will head up an enquiry into Russia’s participation in the 2016 US election.
These small fluctuations in price are typical of the market and those who are looking to buy gold bullion should remember that gold is historically a very stable asset compared to other more volatile markets such as paper currencies, stocks and property.
In fact, the gold bullion market held steady following the release of the minutes of the US Federal Reserve’s last policy meeting – traditionally a trigger for price swings – which downplayed the chance of interest rates rising.
"We think that the precious metal has weathered the prospect of a Fed increase rather well," INTL FCStone analyst Edward Meir told Reuters.
"We do see further strengthening ahead in light of what we think will be continued dollar weakness emanating from more Trump-related headaches emanating from Washington."
Remember you can track market prices with our live charts if you’re planning to buy gold bullion as an investment yourself.
Gold bullion market latest news
Other news affecting the precious metal this month included the announcement on the 8th May, that The London Bullion Market Association (LBMA) will be publishing the gold and silver physical precious metal holdings of the commercial London vaults from summer 2017. The announcement follows the Bank of England’s publication of its holdings, which began earlier this year.
Ruth Crowell, Chief Executive of the LBMA said: “We are delighted that the Bank of England and the commercial vaults in London have agreed to support the publication of the vault holdings. This is an important step towards greater transparency and will provide further evidence as to the size and importance of the precious metals market in London.”
The LBMA has also launched the Global Precious Metals Code, which is designed to build “greater trust, consistency and transparency throughout the market.”
All good news for an increasingly open and honest gold market.
Moving into June, all eyes will be on the UK general election as the market waits to see what the country’s next political step will be.
