Gold and silver prices have fallen: what are the reasons?
7 January 14:09
Global gold and silver prices have declined amid a stronger dollar and investors’ reassessment of recent events in the United States and Venezuela.
This is reported by "Komersant Ukrainian" with reference to Reuters.
Thus, the spot price of gold fell by 0.8% to $ 4461.51 per ounce. Gold bullion hit a record high of $4,549.71 on December 26. US gold futures for February delivery fell 0.5% to $4471.30.
“The beginning of the New Year was quite frantic and volatile, so profit-taking and reassessment of the situation in Venezuela is especially appropriate,” said Jamie Dutta, chief market analyst at Nemo.money.
According to him, the US dollar has recently been hovering around a two-week high, making metals priced in dollars more expensive for holders of other currencies.
Analysts also note that low-yielding assets such as gold tend to perform well in low interest rate environments and in times of geopolitical or economic uncertainty.
Among other precious metals, spot silver was down 2.3% to $79.40 an ounce, below the all-time high of $83.62 reached on December 29.
Spot platinum was down 6% to $2,297.56 an ounce, retreating from a record high of $2,478.50 reached last Monday. Earlier in the session, it rose by more than 3%. Palladium was trading 4.5% lower at $1,740.12 an ounce.
It is worth reminding you that at the end of last year, gold prices rose to a historic high. The precious metal reached its best annual result in more than four decades.
Amid the rapid rise in gold prices, silver prices also rose significantly. Speculative purchases and supply disruptions in key shopping centers contributed to the rise. In addition, at the beginning of the month, silver futures trading in Shanghai picked up sharply, with volumes almost reaching levels seen during previous crises.
