Gold prices on December 21 morning dropped below $1,800 per troy ounce under the influence of multidirectional factors, Report informs referring to the auction data.
The price of February gold futures on the New York Comex stock exchange fell 0.13%, or $2.35, to $1,792.25 per troy ounce.
The main factors affecting gold prices are expectations about the monetary policy of the US Federal Reserve, as well as the risks of the spread of COVID and rising inflation. At its December meeting, the Fed announced that it is accelerating the rollback of asset purchases from the market and forecast three rate hikes next year. The tightening of the regulator’s policy supports the US dollar and negatively affects gold, making it less available when bought in another currency.
Annual inflation in the US in November has been at a record level since 1982 at 6.8%, and gold has traditionally been an inflation hedge. In addition, the third, final estimate of GDP growth in the US in the third quarter will be released on December 22.