Tight Liquidity Causes Gold to Stutter as 2026 Gets Started
A recent analysis has determined that prices of gold dropped in the first trading sessions of the year, with spot gold dropping by over 4%. While prices did start the week at a low of $4,274 an ounce, they recovered slightly, increasing to $4,542 an ounce by the week’s end. This is quite a decrease from the highs recorded last year when prices rose by almost 65% year-on-year. The rally was partly driven by decreasing inflation concerns and a weaker greenback. Expectations that the Fed would begin reducing rates of interest also helped drive the rally, with many expecting the Federal Reserve to cut rates at least twice this year. Lower rates of interest usually decrease the opportunity cost…