Gold Price Holds $1800 for Christmas as US Inflation Confirmed at 4-Decade High

12.27.21 - 2022: Inflation Will Define Next Market Battleground

Gold last traded at $1,807 an ounce. Silver at $22.96 an ounce.

NEWS SUMMARY: Precious metal prices rose Monday on year-end bargain hunting and a weaker dollar. U.S. stocks rose despite a slide in airline shares following Covid cancellations.

Bullion Vault--"Gold prices slipped into the long Christmas weekend in London on Thursday, trading $5 below last week's finish as the fast-spreading Omicron variant of Covid-19 failed to dent a rally in world stock markets and new US data confirmed inflation has accelerated to the fastest pace in 4 decades.

After yesterday's third-quarter GDP revision showed annualized economic growth of 2.3%, beating analyst forecasts, the Bureau of Economic Analysis said Thursday that the so-called 'core' PCE measure of domestic US prices rose 4.7% per year in November.

Matching the peak of February 1989, that was the fastest such rate of inflation in the world's largest economy since September 1983....

'European banks prepare for pullback in ECB stimulus,' says a headline from the Wall Street Journal, noting how covered bond issuance 'rose recently to highest monthly level since pandemic began.'

'The threat of inflation, which will underpin a potential rate increase, or less liquidity provided by the central banks,' reckons Gabriel Levy, global head of debt capital markets at French bank Natixis."