Gold prices marked their biggest yearly decline since 2015
Silver set for worst year since 2014
For the year, platinum down about 11% so far, palladium 23%
Gold faces ‘downhill battle’ amid rate hikes in 2022- analysts
After a subdued trend in the early part of December, both gold and silver managed to edge up in the second half. Precious metals however lost their sheen in the year 2021 with Comex gold recording its worst yearly performance since 2015.
Going forward, news flow regarding the spread of COVID-19 along with the movement in the U.S. bond yield would play a key role in influencing precious metals’ prices. Comex gold closed 2.9% higher at $1,828.6 an ounce at the end of December. Comex silver gained 2.3% to settle at $23.35 an ounce.
The Comex gold price is still coiling in a tight range, indicating a contraction in volatility. Such contraction is a precursor to a sharp price move. A move past $1,880 or a slide below $1,720 would set the tone for the next big move in Comex gold.
Until either of these levels is breached, expect wild swings based on the news flow regarding the U.S. Federal Reserve’s bond purchase and the spread of COVID-19. It would be appropriate to discuss short-term targets once either of the two levels mentioned above is breached.
Comex silver almost tested the target zone of $20.5-21 mentioned last month. After dropping to a low of $21.45, the price recovered in the latter half of December.
The price action in the past few weeks indicated short-term strength in Comex silver. The price could head to the immediate target of $24.5-25. This view would be invalidated if the price closes below $21.
Platinum dropped more than eleven per cent, and palladium was headed for its biggest yearly decline since 2015 with an over 23 per cent slide.