October saw a modest increase in the gold price, after September’s more notable fluctuations. Opening prices on the 1^st October were £956.05 for a troy ounce, before upwards momentum kicked in pushing the closing price for the month to £964.55 on the 30^th, an increase of 0.89 per cent over the month. Prices peaked on the 12^th October at £985.80.

Global tensions push up gold price

Prices rose in the first week of October, from the seven-week low they’d hit at the end of September, as geopolitical tensions in North Korea and Iran boosted safe-haven buying. Prices reached £980.86 on the 9^th October, retreated slightly on the 11^th, then reached the October height of £985.80 on the 12^th, in anticipation of further news about US inflation rates.

Dollar advances, gold retreats

After the 12^th, prices took a general downwards trend although temporary peaks were recorded of £984.31 and £980.99 on the 16^th and 19^th of October respectively.

The 23^rd October saw further retreats, at £965.19, a two-week low, following a strengthened dollar in response to the re-election of Japanese Prime Minister Shinzo Abe.

The price continued to decline through the rest of October, hitting £964.55 on the 30^th. Although the gold price did rise briefly on the 28^th to £971.38 amid the political concerns in Spain surrounding the Catalonia region.

Prices on the 30^th October marked an overall price increase of 0.89 per cent since 1^st October.

Economic outlook – a good time to sell gold?

October also revealed some poor economic data for the UK. Weak productivity and growth were recorded as well as a falling exchange rate for Sterling against the dollar of 1.59 per cent across the month.

If you’ve been affected by the negative economic outlook and need to access cash quickly, now could be a good time to sell gold during the modest price rise. UKBullion offer excellent rates for gold coins, gold bars and gold jewellery. Find out more about how to sell gold on our website.