Precious metals and world stock markets rushed forward for the week. London gold, silver and platinum gained 3 percent, 1.4 percent, and 7.7 percent, respectively. The Dow rallied 11.3 percent, marking its best performance in 34 years, but it also recorded its worst month since the October stock market crash of 1987. The S&P surged 10.5 percent, but posted a monthly decline of 16.9 percent. And the Nasdaq gained 10.9 percent, yet lost 17.7 percent in October.
Nymex December crude gained $1.85, or 2.8 percent on Friday, to settle at $67.81 per barrel. However, it marked its largest ever monthly drop of $32.83, or 32.6 percent, and is off more than 54 percent from its record of $147.27 in July. The good news for consumer, however, was that the average U.S. retail price for a gallon of regular gasoline on Friday fell to $2.50.
London silver ended at $9.28 an ounce — a gain of 27 cents on the week, or 40 cents from last Friday.
London gold fell to $730.75 an ounce, rising $10 for the week, or $18 from last Friday.
London platinum climbed to $814 an ounce — a gain of $58 for week, or $36 from last Friday.
“Friday’s markets and their actions confirmed that which many had already feared: this was the worst month for world stock markets, in decades. It is looking more and more like it is going to be one long, cold economic winter,” said senior analyst Jon Nadler at Kitco Bullion Dealers.
“The dark and scary mood also persisted in the commodity markets as metal after grain, and sugar after fuel, all dropped by amounts that start with the superlative “largest” before the metric of the drop is described. To wit: gold finished the month with an 18% loss,” added Nadler.
Jesper Dannesboe, senior commodity strategist at Societe Generale made the following assessment for gold:
“In times of recession, the most likely scenario for gold is it goes down a lot, especially if it is trading at historically high levels. Because the fears of inflation will be replaced by fears of disinflation and that is a killer for gold … I think gold is going below $600 in this cycle.”
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. When prices are falling and economic activities are shrinking, gold prices tend to move lower.
Silver, gold and platinum performance charts and tables follow as well as a Reuters weekly business recap video and three related precious metal articles.
CoinNews London Fix Charts: Silver, Gold and Platinum
(October 27-31)
The London Fix is one of the most used bullion quotes around the world. The London AM fix for gold and platinum begins at 10:30am GMT (5:30am in New York), and the PM fix begins at 3pm GMT (10am in New York). The London Fix for silver begins each business day at 12pm GMT (7am in New York).
London Fix figures: percent and dollar changes
October 27-31
|
Up
|
Down
|
Week % Change
|
Week $ Change
|
Friday Close
|
|
| Silver |
X
|
|
3.0%
|
$0.27
|
$9.28
|
| Gold |
X
|
|
1.4%
|
$10
|
$731
|
| Platinum |
X
|
|
7.7%
|
$58
|
$841
|
Week change numbers are for Monday AM-Friday PM
October 20-24
|
Up
|
Down
|
Week % Change
|
Week $ Change
|
Friday Close
|
|
| Silver |
|
X
|
-9.3%
|
-$0.91
|
$8.88
|
| Gold |
|
X
|
-11.3%
|
-$91
|
$713
|
| Platinum |
|
X
|
-14.7%
|
-$134
|
$778
|
Week change numbers are for Monday AM-Friday PM
October 13-17
|
Up
|
Down
|
Week % Change
|
Week $ Change
|
Friday Close
|
|
| Silver |
|
X
|
-9.9%
|
-$1.05
|
$9.56
|
| Gold |
|
X
|
-9.3%
|
-$81
|
$785
|
| Platinum |
|
X
|
-13.2%
|
-$130
|
$856
|
Week change numbers are for Monday AM-Friday PM
October 6-10
|
Up
|
Down
|
Week % Change
|
Week $ Change
|
Friday Close
|
|
| Silver |
X
|
|
4%
|
$0.45
|
$11.74
|
| Gold |
X
|
|
7.7%
|
$64
|
$901
|
| Platinum |
X
|
|
4.4%
|
$42
|
$1001
|
Week change numbers are for Monday AM-Friday PM
Bullion and business related articles for the week
In related news, interesting or quick-read articles:
- October 31 – Gold futures lose ground as dollar strengthens – MarketWatch
Gold futures fell 2.7% Friday, ending October’s trading with their worst monthly record since early 1983, as a strengthening U.S. dollar and fund liquidations pounded the precious metal and other commodities.
- October 31 – Gold monthly fall biggest in 25 years – Reuters
Gold prices dropped 2 percent on Friday, concluding their worst month in a quarter century as a strong dollar and recession fears drove investors into less volatile assets.
- October 31 – Blacktober (No) Suprise – Jon Nadler
Friday’s markets and their actions confirmed that which many had already feared: this was the worst month for world stock markets, in decades… The dark and scary mood also persisted in the commodity markets as metal…
Business week overview and wrap-up by Reuters News
Investors received a trick and a treat Friday with stocks closing the worst month since the 1987 crash, but the Dow’s best week in 34 years.
In stock market action, the three major US indexes:
-
The Dow gained 144.32 points Friday to close at 9,325.01. For the week, the Dow surged 11.3 percent.
-
The S&P 500 climbed 14.66 points Friday, closing to 968.75.
- The Nasdaq rose 22.43 points Friday to finish at 1,720.95. It gained 10.9 percent for the week.
In other world markets:
-
The German DAX gained 118.67 points to close at 4,987.97.
-
The Paris CAC 40 rose 79.25 points to close at 3,487.07.
- And the London FTSE 100 climbed 85.69 points to close at 4,377.34.
Conway Gittens reports from New York.
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