Gold prices are falling: what are the reasons
19 December 16:18
On Friday, December 19, the spot price of gold fell by 0.1% to $4,326.37 per ounce. US gold futures fell 0.2% to $4,354.80. Despite a slight decline due to the strengthening dollar, the week ends in the green zone. Analysts expect historical highs next year.
This was reported by "Komersant Ukrainian" with reference to the Reuters publication.
The main driver of the market was the economic situation in the United States. The latest data showed that inflation slowed to 2.7%, which is below the expected 3.1%. This gave investors a clear signal: The Federal Reserve is likely to start cutting interest rates as early as January.
MarketPulse analysts note that the current decline in prices is only a temporary “positioning” of players before the holidays. According to the baseline scenario of leading brokers, gold may rise by another 14% by December 2026, reaching $4,900 per ounce.
The silver market is performing well. On December 19, spot silver rose by 0.8% to $65.93 per ounce, and the total growth since the beginning of the year was 128%. For comparison, gold rose by 65% over the same period. This success of silver is explained not only by investment interest but also by the rapid growth of industrial demand.
While global investors are buying up gold and silver bullion, physical demand in the largest consumers, China and India, has fallen slightly. Record prices have made Indian buyers more cautious, even in the midst of the wedding season, leading to discounts in domestic markets.
