November for the most part saw stability in the gold price as it tracked the least volatility against the dollar over a one-month period in 12 years. Despite this, November saw some contained fluctuations in the market, most noticeably between the 27th and 30th, when a comparatively dramatic fall in the gold price occurred.
On the 1st November, a troy ounce of gold sold for £962.94. This price rose to £979.77 by the 28th, and then fell to £940.38 on the 30th. Across the full month of November, gold lost 2.33 per cent of its value.
Initial peaks in palladium price and gold price
November began with price gains, as gold marked a three-week high at £981.44 on the 8th November. Palladium also recorded its highest value in 16 years during this week. This came as uncertainty spread about the upcoming US tax reforms, which look set to be the most fundamental for decades. True to trend, political uncertainty helped bump up our favourite precious metal.
This uncertainty continued to play a role throughout the coming weeks.
Dramatic falls in the gold price
Despite a modest rise and comparative stability throughout most of November, the closing days of the month saw a dramatic drop in the gold price.
Better than expected US-economic data showed growth rates to be higher than predicted, which bolstered the dollar and prompted a drop in the gold price. Gold lost 2.18 per cent of its value between the 27th and the 30th of November.
Sterling rose against the dollar during this period, as suspicions of a Brexit ‘divorce bill’ settlement improved expectations that a deal would soon be struck. Sterling gained 1.72 per cent of its value against the dollar over the same period, and the gold price at the close of November stood at £940.38.
As we move into December, the gold price has followed a downward trend for the first few days. With Brexit talks taking a turn for the worst on Monday 4th December, the market should prove pretty interesting over the coming days and weeks.
If you think this could be a good opportunity to buy gold, have a look at our range of gold coins and gold bars today.
