Gold set to post its worst week since November 2021

 Gold set to post its worst week since November 2021

Gold set to post its worst week since November 2021.

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On Friday, the precious metal gained in London but was still trading near a two-week low hit earlier in the day.

World Health Organization warnings that the omicron variant cannot be considered “mild” coupled with higher yields have helped boost the safe-haven asset.

In trade, gold futures eked out a slight gain to trade around $1,790 per ounce but had its worst week since November 2021. The benchmark yield on ten-year U.S. Treasury bonds rose to the highest level since March 2021.

The Gold price is plummeting as markets attempt to squeeze in a fourth-rate hike for 2022 in response to yesterday’s Federal Open Market Committee minutes

In spite of the fact that omicron seems to cause less severe symptoms than delta, it shouldn’t be categorized as “mild”, according to WHO Director-General Tedros Adhanom Ghebreyesus.

The Federal Reserve’s hawkish policy is supported even by its most dovish officials. Mary Daly of the San Francisco Fed said Thursday that trimming the Fed balance sheet would come after normalizing the fed funds rate. James Bullard, president of the St. Louis Fed, said during a separate event that the Fed could raise its rate as soon as March 2022.

 In addition to non-farm payroll data due later today and inflation data due next week, investors are watching to see if they will reinforce or undermine the case for faster rate hikes at the world’s most powerful economy.

No matter what the result of the data is, however, markets will continue to pencil in a Fed balance sheet runoff, thereby pushing real rates higher and pushing gold down.

Olumide Adesina

Olumide Adesina a France-born Nigerian, a Certified Investment Trader, with more than a decade of working expertise in Investment and Trading. He is also a reputable author and writer for CoinDesk and FxEmpire.

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