Gold Broadlly Supported As Dollar Sinks

Published on Jan 14, 2022 13:42

COMEX Gold futures consolidated after hitting around one week high near $1830 per ounce. The metal currently trades at $1826 per ounce, up 0.26% on the day, witnessing steady buying on nervous equities given the constant spread of the Covid-19 globally. Gold remains broadly supported on sliding US dollar. The US Dollar Index broke well under 95 mark, extending recent losses and nearing three month low. Bitcoin is down 2% to quote around $42700 mark, witnessing consistent selling pressure after testing around three month low mark and is keeping Gold supported. The World Gold Council (WGC), in its Gold Outlook 2022, stated that despite potential rate hikes, real rates remain low. Gold may face similar dynamics in 2022 to those of last year, as competing forces support and curtail its performance. WGC says that while rate hikes can create headwinds for gold, history shows their effect may be limited.