The Magazine for Asian Investors
Gold futures closed higher on Friday (Dec. 31), supported by the dollar’s depreciation. Gold investors continue to buy gold as a safe haven. Given the concerns about the impact of the devaluations of the currencies around the world, the continued negative real interest rates, and the uncertainty of how long the COVID pandemic will continue certainly not a bad choice.
- Gold futures were up $14.5, or 0.8%, at $1,828.6 per ounce.
- Silver futures were up 29.2 cents, or 1.27%, at $23.352 an ounce.
- The platinum contract was up $1.6, or 0.17%, at $966.2 per ounce.
- Palladium fell $71.10, or 3.6 percent, at $1,912.10 an ounce.
Gold futures are up 0.9% this week after the dollar index, which measures the dollar’s movements against the six major currencies in a basket of currencies, fell 0.40% to 95.5916 on Friday. That makes gold cheaper for holders of other currencies.
In addition, the world is now entering its third COVID year and the virus continues to spread in new variants. In uncertain times, it is wise to be safe and to protect your purchasing power. Physical gold continues to be a sought-after investment despite little movement in the paper gold market. In Germany, where the last hyperinflation was not so long ago, people continue to buy gold coins as a hedge. More than 80% of the Krugerrand coins exported this year went to Germany.
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Saturday, January 1, 2022