Gold finishes 2021 on a decline
Market trades show the prestigious metal halting at a near $1,800 per ounce, while analysts predict another drop.
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The trade value of gold held on to a mere $1,808.80 an ounce on Monday to close out 2021.
Market analysts predict a slow pace in trades with gold prices fluctuating to begin 2022 through 2023. A pause in major global markets like India and China, in addition to inflation, are factors that contributed to the metal’s decline.
On the market, gold reflected a height of $1,814.60 and a low of $1,803.60, based on a MarketWatch report.
During the summer of 2021, gold reached a low of $1,677 per ounce with experts seeing an immediate need to buy the U.S. dollar amidst an employment crisis. When the dollar value increases, gold drops in value because of low demand worldwide.
Raffi Boyadjian, lead investment analyst at broker XM, recorded his findings from Monday’s market rates.
“Gold was unable to move past the $1,810 resistance, slipping to around $1,805/oz as the US dollar edged up,” Boyadjian noted.
Some hope to see gold reaching a trade price of $2,000 per ounce, but most analysts forecast rates remaining near $1,700 to begin 2022, and another possible low of $1,600.
U.S. Treasury yields also witnessed a dip on Monday after the bond market closed on Friday, Dec. 24. The 10-year Treasury yield currently stands at 1.479%.
The slowed trade puts a strain on merchants looking to gain profit off of the metal luxury. Jewelers continue to navigate through an overall less demand for gold with COVID variants widespread and canceled special occasions.
After nearly a two-year hiatus, the wedding industry is predicted to see a boom in service all throughout 2022. Perhaps a return to couples tying-the-knot may assist in jumpstarting gold demands globally.