Earnings for gold, despite the strengthening of the dollar

Gold recorded new gains for the third time in the last four, although the strength of the US dollar cut part of the demand for the precious metal.

THE gold delivery in February thus gained $ 2.10 or 0.1%, closing at $ 1,810.90 per ounce, after yesterday’s fall of 0.2%. The metal hit an intra-conference high of $ 1,821.60, at levels it had not seen since Nov. 19, before falling below those levels later in the session.

Price fluctuations have been relatively low since November, as worries about the coronavirus’s Micron mutation, as well as uncertainty as to whether central bank policies will be able to curb inflation, have created a wait-and-see atmosphere in the markets.

Investors, in this climate, buy major government debt driving yields lower. An earlier weakness of the dollar provided some support for precious metals, which are traditionally considered a safe haven from uncertainty and inflation.

However, the dollar gained ground on Tuesday, pushing the precious metals, although the US sovereign debt yield remains very low, with the exception of some short-term cycles.

Some commodity experts are worried that the outlook for the precious metals will be hurt as the Federal Reserve moves more aggressively, raising interest rates in 2022.

“When interest rates rise, the opportunity cost of holding gold also rises, pushing down prices,” Naeem Aslam, chief market analyst at AvaTrade, said in a note today.

In the other metals, the March copper lost 3.9 cents, or 0.9%, to $ 4.433 a pound, h January platinum added $ 10.20 or 1.1%, closing at $ 979.40 an ounce, while the March palladium It rose $ 54.10 or 2.8%, closing at $ 2,000.60 an ounce, exceeding the “psychological” limit of $ 2,000 for the first time since November 19.