Gold and silver have fallen in price again: what is the reason
21 November 15:19
Gold prices retreated by more than 1% on Friday, November 21, and are likely to end the week in the red after US labor statistics the day before cooled expectations of a Fed rate cut in December, "Komersant Ukrainian" reports citing Reuters.
By 12:08 Kyiv time, the spot price of gold fell by 0.82% to $4,043.52 per troy ounce.
“Prospects for further rate cuts have weakened markedly after good labor market data. This is the main factor (weighing on gold),” said Nitesh Shah of WisdomTree.
The Fed will keep the key rate unchanged in December, traders predict, judging by their positioning after data showed that the number of people employed in the US economy excluding the agricultural sector increased by 119,000 in September, while the forecast was for a rise of 50,000.
Meanwhile, physical demand for the precious metal in key markets in Asia remained weak this week as volatility in the outlook for the future trajectory of interest rates kept buyers at bay.
However, according to ANZ analysts, the fundamentals for gold have not changed: slowing economic growth, high equity valuations, geopolitical uncertainty, and diversification away from U.S. assets will support investment demand and central bank purchases.
Palladium fell by 1.93% to $1,351.2 per ounce, and silver by 3.01% to $49.07 per ounce.
The price of platinum fell by 1.22% to $1,493.15.
