Gold prices crossed the key $1,800 mark on Friday (December 17) and recorded their first weekly gain in five weeks as concerns about a spike in Omicron infections and high inflation spurred investors. find safe haven assets.
Closing Friday's session, the spot gold contract advanced 0.2% to $1,802.12 an ounce. Since the beginning of the week, this contract has increased 1.1%. Gold futures added 0.4% to $1,804.90 an ounce.
Stocks were on fire across the board, volatile ahead of a shift to a "hawkish" stance by global central banks seeking to limit mounting price pressures and economic risks posed by the number of Covid-19 cases. 19 spiked.
Phillip Streible, chief market strategist at Blue Line Futures, said: “Growth is slowing next quarter, and US stocks are correcting back from their peaks, so it looks like there's going to be an upside move. abruptly move away from equities to safe-haven assets like gold.”
“The outcome of the US Federal Reserve (Fed) meeting was a big cloud of uncertainty for precious metals and now the focus is on the labor data,” Mr. Streible said.
The Fed on December 15 signaled three rate hikes through the end of 2022, a move that typically puts pressure on gold as higher rates increase the opportunity cost of holding the metal unprofitable. capacity.
Still, gold prices rose as the prospect of a rate hike was already priced in before the Fed's announcement, analysts said.
Gold rose despite the inflow of money into the US dollar, which is also seen as a safe store of value in times of geopolitical uncertainty.
However, "the outlook for gold in 2022 remains clouded with most forecasts saying gold is falling on expectations of higher interest rates," said Saxo Bank analyst Ole Hansen.
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