The gold price could rise again for the first time after the weekend in Asia after the US economic figures were anything but promising last week. Also, the figures this morning from China speak rather for a slowdown in economic growth.
- Gold futures were up 0.21% to $1,821.20 per ounce.
Last week, Fed Chairman Jerome Powell said the U.S. economy is ready for the start of tighter monetary policy. Other Fed officials said the central bank would likely raise interest rates in March 2022. Inflation figures released last week fit this picture. The consumer price index rose 7% – the largest increase in 40 years. In addition to consumer prices, producer prices also rose. The producer price index (PPI) rose 9.7% in December from a year earlier. Other negative factors were initial jobless claims, which rose to 230,000, and consumer confidence, which fell to 68.8.
Rising prices and soaring COVID numbers are putting pressure on gold sentiment in India at the moment. Physical gold purchases in India are reported to have declined again. Gold is a popular gift in India, especially at weddings.
However, increasing demand in China can be expected. In China, the New Year’s festival is coming up, and gold is often given away as a gift. The country is one of the main consumers of gold.
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Monday, January 17, 2022