Gold prices rises with increase demand - Economist

Gold prices rose in trading on Friday, November 26, due to concerns about the spread of a new strain of the Coronavirus, which led to an increase in demand for the yellow metal, which represents a safe haven.

Also helping gold, the dollar index fell 0.2% from a 16-month peak recorded earlier in the week, while the benchmark 10-year US Treasury yields also fell.

The price of gold in spot transactions increased by 0.5% and reached 1797.46 dollars per ounce, and the price of gold in the US gold futures contracts increased by 0.8% and reached 1797.70 dollars.

We find that the gold price is heading to record the worst weekly performance since August 6, 2021, but gold has lost 2.6% since the beginning of the week and is heading towards recording the worst weekly performance due to increasing expectations that the Federal Reserve will reduce asset purchases and raise interest rates at a faster pace.

As for other precious metals, spot silver prices fell 0.1% to $23.56 an ounce, platinum also fell 1.2% to $983.53, while palladium increased 0.9% to $1,877.11.