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Gold prices fall as the dollar weakens

Gold prices eased Thursday and were hit by the stronger dollar as investors evaluated how central banks were likely to respond to inflation and concerns stimulated by the new Omicron coronavirus variant. ..

Basics

* Spot Gold XAU = fell 0.1% to $ 1,780.36 per ounce by 0050 GMT. US gold futures GCv1 fell 0.1% to $ 1,782.50.

* The dollar index remained strong, rebounding 0.4% from the previous low and raising the cost of gold to buyers holding other currencies.

Federal Reserve Chairman Jerome Powell said the U.S. central bank needs to be ready to deal with the possibility that inflation will not recede in the second half of next year, as most forecasters currently expect. Said.

* The latest COVID-19 variant may exacerbate some of the supply chain challenges and shortfalls that lead to higher inflation, which authorities are in deciding how to withdraw monetary policy support. Should be taken into account. Said.

* Decreasing stimulus measures and raising interest rates tend to push up yields on government bonds, raising the opportunity cost of interest-free gold.

* The Fed has given up its long-standing claim that high inflation is temporary, but the Bank of England and the European Central Bank are not fully prepared to keep up with the changes.

* US manufacturing activity picked up in November amid strong demand for commodities, and inflation remained high as factories continued to struggle with a shortage of pandemic-related raw materials.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% from Tuesday to Wednesday to 990.82 tonnes.

* Spot Silver rose 0.3% to $ 22.37 an ounce. Platinum was up 0.2% to $ 935.48 and palladium was up 0.4% to $ 1,753.68.

Gold prices fall as the dollar weakens

Source link Gold prices fall as the dollar weakens

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