The price of gold gained 1% this Thursday, December 16, due to the fall of the dollar after the United States Federal Reserve (Fed) decided the withdrawal of its pandemic-era bonds early next year.
Spot gold gained 1.1% to 1,796.47 per ounce at 10:37 am while US gold futures were up 1.9% at $ 1,797.40.
The dollar fell as gold became cheaper for holders of other currencies and contributing to bullion gains, despite the rebound in riskier assets. For its part, the Fed was preparing to control the rise in prices.
Likewise, there are other factors for the increase in the price of the dollar apart from the fall of the dollar. According to StoneX analyst Rhona O’Connell, “There are multiple supporting elements for gold including geopolitical problems and stifled physical demand.”
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“Gold prices are likely to have another $ 1,800 break next yearas the US dollar is likely to weaken and real returns remain negative, ”Standard Chartered Bank reported.
However, analysts warned Wednesday that gold could fall to the downside next year, amid the tightening of Fed policy. Other metals also followed gold, such as palladium rising 7.8% to US $ 1,721.67. Silver was up 2% to $ 22.49 an ounce, while platinum was up 1.7% to $ 934.05.
Additionally, leading metals consultancy Metals Focus predicted that palladium will average $ 2,170 in 2022, and forecasts a tightening of the automotive catalyst market towards the end of the year, amid a recovery in vehicle production.
Source: Reuters
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