Gold continues its upward trend, starting the week with a new growth of 0.6%, to levels of nearly 1345 dollars per troy ounce, the highest in the last four months.
The factors that affect the market at the moment are several. Firstly, there is a reverse correlation between the price of the dollar and the commodity traded (including gold).
When the "green money" rate is declining, as is the trend over the past two months, the price of commodities denominated in dollars usually rises as they are in fact cheaper for buyers in another currency.
So, to a large extent, precious metals currently benefit from the moods of currency traders.
Not everything is exhausted with the currency factor, however. According to Bloomberg analyst Mike McGuugh, US Federal Reserve raise by the Federal Reserve, which took place on December 12, has been a strong support for precious metal.
Since then gold has appreciated by 5.7 per cent, and this is the reason for the inflation expectations of investors. Tightening of monetary policy goes hand in hand with a steep rise in consumer prices.
At the end of last week, the so-called main inflation index in the US, which excludes the most volatile elements in the consumer basket, such as food and fuel, reported its strongest increase in the last year - by 0.3 per cent in December.
In such cases, gold is perceived by many investors as protection against inflationary processes. It turns out that from the rise in interest rates in the beginning of December to precious metal "beats" on yield the leading stock indices in Europe and the United States, the government bonds and even the hit on the financial markets - bitkain.
According to Bloomberg, the 5.7 percent appreciation of the gold rose far beyond the S & P 500 in the same period (by 3.14 percent) and Stocks Europe 600 (1.73 percent).
For comparison, 10-year US government bonds fell 0.5 percent last month, the dollar index dropped by more than a quarter and a half, and the crypto-hit battlefield lost 17 percent of its value.
Gold, however, is far from being the only winner in the situation. Silver also rose by more than 10% since December 12, platinum added 14.2 percent and palladium - nearly 13 percent of its value.