Mixed Week of News: Gold Goes Up, Gold Goes Down

Mixed Week of News: Gold Goes Up, Gold Goes Down

This week was an incredibly bumpy ride for precious metals, as they were battered around—one moment spiking higher, then plummeting lower the next.

The reason for this volatile week in precious metals (and the markets as a whole) was because a number of key pieces of data were released this week, along with some major breaking news in regards to the Brexit movement.

The first piece of information affecting the precious metals market was the recently released U.S. housing data figures, which painted a muddy picture in regards to the overall health of the U.S. housing market.

The United States Commerce Department stated that U.S. homebuilding fell from an impressive twelve year high, with housing starts falling by 9.4%, or 1.256 million units last month alone.

However, data for August was also revised, showing stronger than previously reported numbers, with housing starts being adjusted to 1.386 million units from the previous level of 1.364 million units.

This data initially saw gold bullion move higher, then caused it to fall lower, as the overall general health of the U.S. housing market is still in relatively good shape. This is due to it being artificially supported by low interest rates, which are expected to move even lower in the coming months.

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Authors, Steve D'Eon & Nathan McDonald 

Sourced from, Sprott money, 18th October 2019.