Price Performance Indicator
The gold contract GOLDUD closed last week's fluctuation with a little movement of 0.60% to $1,798.20 per Troy Ounce. The relatively minimal trading sentiment since last Friday made the USD and gold equally strong while the market absorbed issues related to monetary normalization as a follow-up confirmation after sentiment emerged at the Fed meeting last week and COVID’s Omicron developments.
Market sentiment is relatively light this week, with the focus on the performance of the USD on the effects of the Fed's announcement on the previous week that has a number of targets for 2022, namely a reduction in stimulus and 3 times interest rate hikes in 1 year in 2022 Meanwhile, the market's expectations to rising inflation has also become a concern for market participants, because high inflation will usually provide an impetus to the price of gold, which is a hedge against inflation.
From a global perspective, the condition of the spread of the Omicron variant will continue to be a concern because we are wary of holding back the economic recovery in 2022. In Europe, the spread of COVID-19 is still a concern with the latest issues now being re-implemented to social. The issue of COVID-19 in Europe is still the market's attention because it is wary that it could become a new wave of the spread of COVID-19 and provide little support to gold prices.
Ending the year 2021, gold market were clouded by the Fed statement that target at least 3 rate hike in 2022 and also the Omicron spreading around the world which cause the daily cases reached record high before Christmas. Both issues may rolled to 2022, with higher rate may cause investor and traders move to higher yielding products with cautions to higher inflation that will balance the rate hike sentiment. While people focused to Fed’s action, Omicron may become this week problem as spike of daily cases were seen in several countries. The Omicron, by several market players, causing worried as it may cause a turmoil in 2022 economy improvement.
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