Gold received an optimistic signal from investors
The largest bullion-backed exchange-traded fund, SPDR Gold Shares, saw its largest net inflow in dollar terms since its inception in 2004, at $1.63 billion on Friday.
Investor interest in long-term gold rates is tracked by changes in ETF holdings. In 2021, holdings decreased, putting downward pressure on gold prices.
Jump before the Fed meeting
The increase comes ahead of a major US Federal Reserve meeting this week, which experts believe may indicate the beginning of rate hikes in March.
Even as the Federal Reserve prepares for a tightening that might lessen the appeal of interest-free valuable metals, plunging equities, U.S.-Russia tensions, and a decline in crypto are supporting secure demand.
The net input on Friday was 27.6 tonnes in weight. On a day when the spot price declined 0.2 percent, it was still at a 2-month peak.
Following setting a new high in 2020, gold had an uneventful 2021, with the SPDR gold ETF seeing its largest annual outflow in tonnage terms since 2013.