The benchmark December contract for U.S. gold futures ended Friday’s trading up $15.70, or about 1%, at $1,769.40 for an ounce on the New York Comex. What’s more, it increased by $92.80, or 5.5%, for the week, which is the largest since a 6.5% increase from the week of April 3, 2020.
By 14:45 ET in New York, the spot price of bullion, which some traders follow more closely than futures, was at $1,766.59 an ounce (19:45 GMT).
Since Thursday, gold has surged as U.S. inflation hit its lowest annual figure in nine months. This has increased speculation that the Federal Reserve may scale down the aggressive rate hikes it has carried out since March, which will cause the dollar to plummet.The decline in the Dollar Index, which compares the value of the dollar to that of the euro, yen, pound, Canadian dollar, Swedish krona, and Swiss franc, was the most since a 4.8% weekly decline in March 2020. The industry leader in cryptocurrencies, Bitcoin, is currently seeing a 20% weekly decline as the crypto-exchange FTX is on the verge of going out of business.Phillip Streible, chief market strategist at Blue Line Futures in Chicago, predicted that gold will likely win at least part of the capital that has left cryptocurrencies this week. After breaking above resistance at between $1,770 and $1,780, Craig Erlam, analyst at online trading platform OANDA, joins a legion of analysts around the world who predict gold will reach at least $1,800.In contrast to economists’ 8% growth projection and the previous year’s 8.2% annual increase, the CPI, or Consumer Price Index, experienced its worst annual rise in nine months in October, rising just 7.7% over a 12-month period.Comment down your thoughts.
Gold enjoys its best week in 30 months as the dollar and cryptocurrencies plummet
By tirupatinews
