Gold price hits seven-month low as investors turn to other assets
The yellow metal has lost its shine for investors this week, with gold prices plunging on Friday to levels unseen since early July, 2020.
Gold futures for April touched $1,759 per ounce in early trading on Comex, but recouped some losses later in the day. As of 14:09 GMT, bullion prices were up around 0.4 percent higher at $1,781.60.
Spot gold also started Friday’s trading at multi-month lows. The price of the precious metal fell to around $1,760, the lowest since last July. However, it rebounded later in the session to trade almost half-a-percent higher at $1,783 per ounce.
The beginning of this year marked a disappointing start for the precious metal, especially compared to 2020, when it enjoyed its best annual returns in a decade and surged around 25 percent for the whole pandemic year.
Bullion prices erased around six percent since the beginning of January, while more risky assets such as bitcoin have attracted more and more investors. At the same time, stronger dollar and hopes for economic recovery also contributed to lack of interest to the traditional safe-haven asset.
Weakening physical demand as well as disappointing jewelry sales are among key headwinds for the gold market, Bank of America said, as cited by Business Insider. However, the bank did not change its forecast for this year and expects gold prices to average $2,063.
Spot gold also started Friday’s trading at multi-month lows. The price of the precious metal fell to around $1,760, the lowest since last July. However, it rebounded later in the session to trade almost half-a-percent higher at $1,783 per ounce.
The beginning of this year marked a disappointing start for the precious metal, especially compared to 2020, when it enjoyed its best annual returns in a decade and surged around 25 percent for the whole pandemic year.
Bullion prices erased around six percent since the beginning of January, while more risky assets such as bitcoin have attracted more and more investors. At the same time, stronger dollar and hopes for economic recovery also contributed to lack of interest to the traditional safe-haven asset.
Weakening physical demand as well as disappointing jewelry sales are among key headwinds for the gold market, Bank of America said, as cited by Business Insider. However, the bank did not change its forecast for this year and expects gold prices to average $2,063.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.