Gold Prices Soar, Record Weekly Highs

Gold Prices Soar, Record Weekly Highs

global.gerbangindonesia.org – Gold Prices Soar, Record Weekly Highs

Read More

Gold prices rose to their highest level in more than a week on Thursday. The gains came as the safe-haven appeal was lifted by concerns over soaring inflation and uncertainty surrounding the war in Ukraine.

Gold

Quoted from CNBC, Friday (25/3/2022), the price of gold in the spot gold market was up 1 percent at USD 1,963.21 per ounce, the highest level since March 14. US gold futures closed up 1.3 percent at USD 1,962.20.

“Very strong underlying inflationary pressures continue to be the main supporting fundamental factor driving gold prices. There are other contributing factors, especially the war in Ukraine,” said David Meger, director of metals trading at High Ridge Futures.

The Federal Reserve raised borrowing costs by 25 basis points on March 16, and since then US central bank policymakers have signaled a more aggressive approach to tightening monetary policy this year to counter rising inflation.

“Even the idea of a rising interest rate environment biting into the gold market is not enough to offset the positive pressure we are seeing from the inflation slope. We believe that the Fed remains behind the curve,” Meger added.

Gold, which pays no interest, tends to lose its traction when interest rates rise, but the ongoing conflict in Ukraine and a spike in oil prices adding to existing inflationary pressures have put a floor under gold prices, analysts said.

Next

Gold Prices Soar, Record Weekly Highs

Holdings of the SPDR Gold Trust, the world’s largest gold ETF, rose to their highest level since February 2021 on Wednesday.

With gold-backed ETFs rising, “gold could attract more applicants if the risk of stagflation becomes greater in the near term,” said Han Tan, chief market analyst at Exinity.

The meeting of Western leaders in Brussels agreed to strengthen their forces in Eastern Europe, increase military aid to Ukraine and tighten their sanctions on Russia as Moscow’s offensive against its neighbors enters its second month.

Related posts

Leave a Reply

Your email address will not be published.