During the initial days of the Russian attack on Ukraine, gold prices had touched near-to-record levels.
SEATTLE (Scrap Monster): Gold recorded a second straight year of decline in 2022. The yellow metal’s reputation as a safe haven asset was challenged by rising dollar, driven by hiked interest rates from the U.S. Federal Reserve.
ALSO READ:
Gold Discounts Hit Fresh Peak on Sombre Demand
Addition of Gold to Diversify Balanced Asset Portfolio
According to leading market experts, the Fed’s move to fight inflation will determine the sentiment in precious metals market in this year as well. It must be noted that the market recorded mixed trends in 2022, mainly on account of slowdown in economic growth, Covid-19 restrictions, rising inflation and Russia-Ukraine conflict.
During the initial days of the Russian attack on Ukraine, gold prices had touched near-to-record levels. The relentless upsurge in dollar prices, which hit highest levels in almost two decades, offset the demand for dollar-backed bullion. Han Tan, chief market analyst at Exinity noted that unprecedented rate hikes by the U.S. Fed undermined gold’s traditional roles as a safe bet and a hedge against inflation during the previous year.
Among other precious metals, silver ended 2022 by recording marginal gains of 2% over the prior year. But fears of global recession is likely to badly hit industrial demand for the metal in 2023.
Meantime, palladium prices dipped by 6% in 2022, registering the second straight year of decline. On the contrary, platinum prices managed to surge over 10% year-on-year.
Image and article originally from www.scrapmonster.com. Read the original article here.