Marginal gains in the week gold

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Gold closed with gains on Friday, which led the precious metal to record a rise on a 5-day basis, for the first time since the week ended on November 12.

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Gold rallied in today’s session by “defying” data released by the US Department of Labor on inflation, which showed that consumer prices rose last month at the fastest pace in almost 40 years, confirming fears that its rally inflation shows no signs of slowing down.

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Particularly, the consumer price index increased by 6.8% from November 2020. The index has risen 0.8% since October, beating analysts’ estimates of a 0.7% rise in a Bloomberg poll. In October, annual inflation had climbed to 6.2%. The last measurement is more than three times the Federal Reserve target of 2% and the highest since July 1982.

The American president Joe Biden wanted to be reassuring about the spike in inflation, stating that the rise in prices began to slow down.

Analysts estimate that Federal Reserve officials will react to high inflation by announcing the faster withdrawal of easing measures they have set in motion since the pandemic began.

They will initially double the amount of the reduction in monthly asset purchases by the Fed, with the taper reaching $ 30 billion. The move is expected to pave the way for an increase in interest rates even in the spring of 2022.

“Most inflation is much more permanent than everyone would like. This will keep the medium- and long-term outlook for gold bullish,” said Edward Moya, an Oanda analyst. “Gold just needs to ‘survive’ the interest rate hikes that the Federal Reserve will start next year,” he said. “An accelerated cycle of rising interest rates is a big risk and could cause a sell-off panic, which in the short term would have a negative impact on gold. However, this possibility is still unlikely.”

In the wake of the announcement of inflation data, the yield on the 10-year government bond The US is down 1.2 basis points at 1.477%. In the week, the 10-year government bond has strengthened by about 17 basis points.

On Friday dollar shows losses of 0.2% to 96,268 points, according to the ICE US Dollar Index, while in the week it loses 0.1%.

In this climate, the gold delivery in February It strengthened by $ 8.10 or 0.5% on Friday, to reach the price of $ 1,784.80 per ounce. During the week, gold closed with a marginal rise.

As for the other metals, the silver delivery MarchIt rose 18 cents, or 0.8 percent, to $ 22,195 an ounce, with losses of 1.3 percent a week. This was the fourth consecutive 5 days with a drop for silver.

THE March delivery copper closed at $ 4,287 a pound, down 1.1% on Friday, but up 0.5% on the week.

THE January delivery platinum added 0.4% to $ 934.20 an ounce, but rose 0.9% on a weekly basis. The March delivery contract for palladium lost 3.5% to $ 1,749.80 per ounce, while losses for the week stood at 3.5%.


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