Gold starts 2022 dropping below the $1,800 level as it reports a weekly loss of -2.13% with its prices decreasing from Monday’s market open price of $1,828/oz to today’s price of $1,789/oz. This week, the yellow bullion recorded a high of $1,832/oz, the highest price in nearly 7 weeks. The weekly low was seen at $1,782/oz, the lowest price since gold’s strong recovery mid December. In the last 3 months, the metal is up 1.59%.
Gold Price (2 months)
Silver too starts 2022 with a negative week. The white metal loses -5.18% of its value as it sees its prices drop substantially from $23.34/oz on Monday to $22.13/oz at the time of writing. The weekly high was seen at $23.35/oz and the low at $22.03/oz, the lowest price in over 3 weeks. On a 3 month basis, silver prices are down -2.07%.
Silver Price (2 months)
Platinum prices are down -1.55% after experiencing a volatile week playing with the $1,000 level. This week, the industrial metal saw its price drop from Monday’s price of $969/oz to today’s price of $954/oz. This week, platinum experienced a high of $1,002/oz, its first time breaking past the $1,000 level in nearly 7 weeks. The weekly low was $929/oz. In the last 3 months, the metal is down -2.65%.
Palladium is up just 0.80% this week as it struggles to confidently break through the $1,900 level. This week, the metal saw its price increase from Monday’s price of $1,886/oz to $1,901/oz at the time of writing. Palladium experienced a high of $1,921/oz this week and a low of $1,819/oz. On a 3 month basis, the metal is up 1.22%
Rhodium records its 11th consecutive green week as it posts a slight gain of 0.85%. This week, the nitrogen oxide reducing metal saw its value increasing from $11,800/oz to $11,900/oz. In the last 3 months, the metal remains down -5.93% and -38.82% in the last 6 months.
The US jobs data released for the month of December showed that 400,000 jobs were added versus the 210,000 added in November. This promising economic data is likely to confirm the Fed’s aggressive interest rate hike and its asset purchase tapering. The US Dollar might see an increase in value thanks to economic optimism if inflation remains relatively stable.
With high inflation and potential US Dollar weakness, gold might see new highs this year as it is a dollar denominated commodity and seen as an inflation hedge. David Lennox from Fat Prophets believes that gold might flirt with highs of $2,100/oz this year as geopolitical risk could raise the bullion’s price. Lennox quoted Russia’s military presence on the Ukraine border as a catalyst that might trigger a price increase. Lennox believes that if “something disastrous” were to happen, investors would likely turn to purchase a safe haven asset like Gold.