Gold clocks yearly drop amid steep lack in safe-haven appeal
by SOURAV D | VIEW 1999
On Friday, the precious yellow metal gold prices had marked off their worst yearly declines since 2015, mostly heaved down by a year-end resurgence in US Dollar allure as the bullion appeared to have lost its safe-haven appeal amid growing appetite for riskier assets despite a robust build-up in price pressures. Besides, silver contracts had clocked their worst annual percentage declines since 2014, while palladium drowns 22.2 per cent in the year. On top of that, as several analysts were quoted saying that spot gold, which is often contemplated as a hedge against a higher inflation, would likely to meet with a downhill slide amid at least three rate hikes in 2022. Besides, an improvement in economic outlook following an acceleration in vaccination campaign alongside encouraging development over a rapidly surging Omicron variants, which many physicians have been witnessing as a beginning of end of the pandemic at least for now given the variant’s low hospitalization rate alongside a quicker development in immune response, had turbocharged the US Dollar alongside riskier assets such as crude oil while taking the shine off precious yellow metal.
Gold shrugs off 4 per cent in the year
Citing statistics, in the day’s late-afternoon US trading hour, spot gold closed 0.7 per cent higher to $1,827.51 an ounce, while US gold futures’ prices settled 0.8 per cent higher at $1,828.60 per ounce.
Gold took a header of 4 per cent over the year. Meanwhile, citing that gold futures’ prices would more likely to plunge further over coming months amid a hawkish turnaround in US Fed’s monetary policy, a DailyFX analyst Warren Venketas said, “With U.S.
10-year yields set to hit 2% in 2022 along with transitory inflation, and of course higher interest rates, gold may be in for a downhill battle”.