The price of gold is preparing for its worst performance in 6 years

The gold price It is preparing for its worst performance in 6 years, although its prices rose a bit last Friday as US Treasury yields fell, increasing the value of the bullion.

Spot gold rose by 0,2% a US$ 1.818,43 la onza, approaching the maximum in a month on Tuesday, December 28. Additionally, US gold futures rose 0.2% to $ 1,818.00.

It should be noted that gold was expected to experience its biggest annual decline since 2015, having fallen 4% so far this year as economies rebounded from the impact of the pandemic, reducing demand for the safe haven metal.

Fundamentals to consider

The benchmark 10-year index of US treasuries fell from its highs on Thursday, with no major catalysts to drive the market’s direction. Also, many operators retired before the New Year holidays.

CAN SEE

Likewise, the dollar index moved away from the low in a month, as investors looked further despite an increase in COVID-19 cases due to the momentum of the omicron variant and favored riskier currencies.

It should be noted that a stronger dollar makes the price of gold more expensive for buyers who have other currencies.

On the other hand, Wall Street closed lower on Thursday, backing down on low US vacation volume as well as the drop in weekly US jobless claims.

Regarding the drop in jobless claims, this occurred even when the COVID-19 infections in the United States they hit a record for the second day in a row, according to Reuters data.

Other precious metals

For its part, cash silver rose by 0,3% a US$ 23,11 la onza, platinum gained 0.3% to $ 963.92 and palladium fell 0.5% to $ 1,956.42

The Silver is also heading for its worst year since 2014, with a drop of around 12%. Platinum fell in price by almost 10%, while palladium was heading for its biggest annual drop since 2015 with a 20% drop. (According to Asha Sistla’s report in Bengaluru; Edited by Vinay Dwivedi).

With information from Reuters