GOLD PRICES eased on Monday after breaking above US$2,500 per ounce and establishing a new record during Friday’s trading.
Spot gold traded approximately 0.5% lower at US$2,494.59 per ounce at 12:09 GMT on Monday, according to Reuters.
The move left bullion around US$15 below Friday’s record US$2,509.65 per ounce.
The milestone marks a further advance in gold’s US Dollar price, although Monday’s retreat shows that a record-breaking session can still be followed by short-term price fluctuations.
For Australian buyers, the international spot price is one component of the local bullion price. The Australian Dollar exchange rate also affects the cost of gold expressed in Australian Dollars.
As a result, a movement in US Dollar gold does not necessarily produce an identical percentage movement in Australian Dollar gold. A weaker Australian Dollar can increase the local price, while a stronger currency can offset part of an international rise.
Physical bullion prices also include product premiums above spot, reflecting factors such as manufacturing, distribution and availability.
The US$2,500 breakthrough is therefore an international market milestone, rather than a direct retail quotation for a particular bar or coin.
Disclaimer
This publication is for educational purposes only and does not constitute financial advice. It does not take into account any person’s investment objectives, financial situation or needs. Before making an investment decision, consider whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser where necessary. Past performance is not a reliable indicator of future performance.