Gold posts weekly gains, but lulls around $1,800 as holiday calm sets in

Safe-haven yellow metal spot gold prices had reported weekly gains despite a sharp increase in risk-appetite

by Sourav D
Gold posts weekly gains, but lulls around $1,800 as holiday calm sets in

On Friday, ahead of 2021 year-end holidays, the safe-haven yellow metal gold futures’ prices had closed out the session with modest gains, mostly riding on the back of a weaker US Dollar alongside a stagnation in US Treasury bond Yields even as risk-appetites had reportedly been improved following an ease in frets of Omicron associated fiscal fallouts.

On top of that, as Central Banks across the globe had been bracing for a lashing wave of inflation-surge over coming months, the safe-haven metal which is often contemplated as a hedge against higher inflations, appeared to have clinched investors’ attentions, suggested analysts.

Meanwhile, citing the bullion’s allure as a counterweight against a higher inflation, a senior market analyst at RJO Futures, Daniel Pavlonis said, “This is just noise on a low-volume day ahead of Christmas”.

Apart from that, the US Dollar Index fell 0.7 per cent last week, marking off its worst weekly plunge in four months, eventually faring well for the bullion, while traders were found to be ditching US Treasury Yields amid a sharp improvement in global business landscape with 10-year Treasury bond notes wrapping up the day almost unchanged at 1.49 per cent, helping bullion restore its safe-haven allure.

Nonetheless, gains were capped by an increase in appetite for riskier assets and currencies as beforementioned.

Gold gains, posts weekly percentage gain

Citing statistics, as of late-afternoon European trading hours, spot gold surged 0.4 per cent to $1,809.89 an ounce, while US gold futures settled 0.5 per cent higher to $1,811.70 an ounce.

Nonetheless, following a late-session profit-taking wave, the bullion had shrugged off some of its shine and traded 0.37 per cent lower on the Christmas Eve. On the week, spot gold prices added 0.22 per cent.