Gold wraps up shiniest year since 2010
Gold prices changed little in the holiday-thinned trade on Thursday, but the yellow metal was looking for its best annual performance in a decade.
Spot gold was almost flat at $ 1,893.84 per ounce at 1000 GMT, but rose more than 24% for the year. It was the best since 2010. U.S. gold futures rose 0.3% to $ 1,898.70.
‘With the declining activity of market participants on the last day of the year, I expect gold to move within a narrow range. “Some modest support comes from a slightly weaker US dollar and a modest lower US real exchange rate,” said UBS analyst Giovanni Staunovo.
‘We are looking for a move towards $ 1,950 in the first quarter of 2021, with expanding monetary and fiscal policies raising inflation expectations and lowering US real rates further. ”
The dollar index fell to more than two years, making gold cheaper for other currency holders.
European equities fell as Britain’s greater coronavirus lockout slumped expectations for a rapid economic recovery in 2021, despite the rollout of vaccines.
Keeping the advance of gold in check was Republican Senate Leader Mitch McConnell’s refusal for a quick Senate vote on a bill to increase U.S. emergency relief.
Unprecedented stimulus measures and low interest rates to dampen economies due to the impact of the pandemic this year have benefited gold as it is seen as a hedge against inflation.
Silver fell 0.6% to $ 26.44 an ounce, but it was up 48% this year, its best performance since 2010.
Platinum increased by 0.8% to $ 1,074.33 per ounce and increased by more than 10% in 2020. Palladium rose 0.4% to $ 2,372.04 and was on course for a fifth consecutive year with a 22% increase.