The price of gold continues to fall: what are the reasons?
8 January 14:16
On Thursday, January 8, the price of gold fell. The cost of the metal is influenced by the strengthening of the dollar, the situation in Venezuela, and statements by the Fed about a possible rate cut.
This was reported by "Komersant Ukrainian" with reference to Reuters.
The spot price of gold fell 0.4% to $4,435.62 per ounce.
Gold futures in the US for February delivery fell 0.4% to $4,444.40.
What factors are affecting the price of gold right now:
- the strengthening of the dollar, which fluctuated near two-week highs;
- the situation in Venezuela (the country is currently expressing its willingness to negotiate with the US, and an agreement has even been concluded on the supply of Venezuelan oil to an American company);
- statements by representatives of the Federal Reserve System (Fed), which increased the likelihood of a rate cut (this indicator is expected to be adjusted twice in 2026).
“Traders are weighing the escalation of geopolitical tensions, including US intervention in Venezuela… with macroeconomic signals from the United States,” analysts said.
The price of bullion is about $110 below the record high of $4,549.71 set on December 29, with gains held back by a strong dollar and profit-taking.
Spot silver lost 2.6% to $76.08 per ounce after reaching a historic high of $83.62 on December 29.
The price of silver is expected to trade in a range of $58 to $88 in 2026 due to limited physical supply, high investment demand, and high gold prices, but warns of a market correction later this year.
The spot price of platinum fell 3.3% to $2,230.90 per ounce after reaching a record high of $2,478.50 last Monday.
Palladium fell 2.8% to $1,715.0 per ounce.
