Gold update: gold price rises above $2.000

Both gold and silver have risen in value this week. Precious metals benefit from better-than-expected inflation figures, which reduces the chance of interest rate increases. In addition, the economic figures are weakening, which could make an interest rate cut possible in 2024.

This week it emerged that American industry shrank in November. The purchasing managers index in the US fell from 50 points in October to 49.4 in November. The lowest point in three months. The services sector grew slightly in November from 50.6 to 50.8 points. A reading below 50 points indicates shrinkage. The composite index came to 50.7.

In the eurozone this year we also saw a decline first in industry and only later in the services sector. This week it emerged that the index of the services sector in the euro zone in November, based on provisional figures, stood at 48.2 points. The industry index stands at 43.8 and the composite index stands at 47.1.

Several members of the ECB commented this week. Pierre Wunsch of the ECB expects that the ECB will leave interest rates unchanged in December and January. Joachim Nagel thinks that interest rates in the eurozone have reached their highest point and that the effect of the implemented interest rate increases is still generating momentum.

Robert Holzmann indicated that the chance of an interest rate increase is as great as the chance of an interest rate cut. ECB President Christine Lagarde said that the fight against inflation is not yet over, but that inflation is heading towards the 2% target. Economic data in the coming months will determine the ECB’s next steps, Lagarde said.

Silver is once again rising faster than gold

The gold price closed above $2000 per troy ounce this week. A good level towards the month of December. Gold has achieved good results in December in recent years. In the last 10 years, the gold price has risen an average of 1% in December. January is statistically an even better month with an average of 3.5%!

Silver performed better than gold, just like last week. Gold rose 0.85% on a weekly basis. Silver gained 2.4% this week, based on the price in euros. The gold price has risen by 7.6% this year. The silver price is still at a small loss of 0.5% this year. The gold-silver ratio closed at 1:82.

Agenda

The (provisional) inflation figure for November in the eurozone will be announced next Thursday. Then the unemployment rate in the eurozone for October will also be reported. The final figure of the eurozone industry index will be published on Friday.