Gold: Moved away from the highs of 2 months, kept the profits for the second week
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The price of gold closed with losses on Friday and moved away from another two-month high recorded in the week. In the 5-day period, however, the precious metal managed to hold its profits and remain on positive ground for the second consecutive week.
“Although far from its best levels, gold continues to move higher for a second week, suggesting that investors are seeking protection against the burst of inflation in the precious metal, as investing risk for stocks and cryptocurrencies has declined.” , Fawad Razaqzada remarked in a note.
The Federal Open Market Committee, which sets interest rates, meets on January 25-26 and is expected to set a timetable for raising interest rates by the Fed.
Razaqzada argues that much of the weakening momentum for gold may have already been priced into gold futures, which until recently struggled to stay above the $ 1,800 psychological threshold.
“I think the markets have already invoked a more aggressive Federal Reserve stance on its monetary policy, and gold has been able to assimilate the recent rise in bonds. So a possible split from current levels would not be a big surprise.” wrote the ThinkMarkets analyst.
In this climate, the gold delivery in February fell $ 10.80, or 0.6%, to $ 1,831.80 an ounce. During the week, the precious metal strengthened by 0.8%, after rising 1.1% last week. On Wednesday, gold closed at a two-month high.
The March delivery silver slipped 40 cents, or 1.6 percent, to $ 24.32 an ounce. Silver gained 6.1% per week, its biggest rise since May 2021.
As for the other metals, the palladium delivery in March added 1.5% to $ 2,104.30 per ounce, recording a “jump” of 12% per week.
THE March delivery copper lost 1.3% to $ 4,524 per pound, with its price rising 2.3% per week. THE april delivery platinum slipped 1.5% to $ 1,035.10 an ounce, but added 7.3% on a weekly basis.