Spot gold fell 0.9% to $ 1,768.45, after yielding up to US $ 1,762.30, its lowest level since Nov. 3. American Gold Futures they were down 1.2% to $ 1,762.70.
“The change in Fed policy and the suggestion that inflation fears will subside have contained the wind that was driving gold up.”said Jim Wyckoff, a senior analyst at Kitco Metals, noting that a decline in crude prices could also suggest a decrease in inflationary pressures.
While the gain in equity markets may suggest a higher appetite for risk, higher volatility in equities, especially amid lingering uncertainty over the omicron variant of the coronavirus, may set gold prices as a safe haven, Wyckoff added.
Although Wall Street was rebounding, driven by financial stocks, the increase in cases of the virus variant worldwide continued to cause volatility in the markets.
The prospect of a more rapid reduction in stimulus could push up the dollar and Treasury yields, a further blow to the attractiveness of gold.said Michael Hewson, chief market analyst at CMC Markets UK.
In addition, the United States Secretary of the Treasury, Janet Yellen, told the Reuters Next conference that it was The Fed’s job to ensure that the current streak of high inflation does not evolve into a damaging and long-lasting “price and wage spiral” as it did in the 1970s.
In other metals, spot silver was stable at $ 22.31 an ounce, platinum was up 0.3% at $ 936 and palladium was up 1.8% at $ 1,778.68 an ounce.
Source From: Ambito
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