Gold: Gains of 1.1% per week despite today’s losses
Get real time updates directly on you device, subscribe now.
Gold closed the week with gains, despite today’s losses. Colin Cieszynski, chief market analyst at SIA Wealth Management, attributed the day’s drop in part to profit-taking ahead of the three-day no-trade, as markets will be closed on Monday due to the Martin Luther King Jr. holiday. However, the fall of the US dollar in the week and the role of gold as a means of offsetting inflation in the long run are among the reasons for the weekly rise in the precious metal, he added.
Particularly, the gold delivery in February fell 0.3% or $ 4.90 to $ 1,816.50 an ounce, having previously reached $ 1,829.30 intra-conference.
On a weekly basis, gold strengthened by 1.1%, after falling 1.7% in the week ended January 7. Prior to that, he had recorded 4 consecutive weeks of profits.
The long-term role of gold as a means of offsetting inflation has returned to the forefront, with the US recording the highest consumer price rate since 1982 and the producer price rate approaching 10%, Cieszynski said.
Investors are preparing for tighter monetary policy in the US in the coming months and are worried about how effective central banks will be in fighting inflation.
The ICE US Dollar Index, a measure of the dollar against six major currencies, rose 0.4% today but fell 0.6% on a weekly basis. It is noted that the weaker dollar makes gold at dollar prices less expensive for buyers abroad.
In other metals, the March delivery silver fell 24 cents, or 1.1%, to $ 22.918 an ounce, but rose 2.3% on the week.
Alongside, the copper delivery in March slipped 2.8% to $ 4,421 a pound, up 0.2% on a weekly basis. End, the platinum delivery in April lost 0.8% to $ 964.60 an ounce, up 0.8% on the week the palladium of March delivery closed at $ 1,878.20 an ounce, down 0.6% today but up more than 2% a week.