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Gold tops $1,800 Friday in wake of Federal Reserve news

By Daniel Tyson

19:16, 17 December 2021

Seven bars of gold
Gold prices climb after Federal Reserve announces plans - Photo: Shutterstock

Gold futures remained slightly above the key rate of $1,800 an ounce Friday, posting the highest settlement in four weeks.

At 2 p.m. EDT (UTC-5) deliveries in February 2022 were at $1,803.10, up .27%, after reaching a high of $1,815.70 during the day.

The increase is being driven mainly by capital leaving risk markets and finding a haven in gold after the Federal Reserve announced earlier this week that it will end its bond-buying stimulus in March 2022 and raise interest rates three times next year in the face of higher levels of inflation.

How gold performs for the rest of the year "may be tricky given the thin market conditions that will shortly settle in,” wrote OANDA senior market analyst Edward Moya.

Oil - Brent

80.44 Price
-2.540% 1D Chg, %
Long position overnight fee 0.0050%
Short position overnight fee -0.0269%
Overnight fee time 22:00 (UTC)
Spread 0.032

Oil - Crude

75.68 Price
-2.520% 1D Chg, %
Long position overnight fee -0.0165%
Short position overnight fee -0.0054%
Overnight fee time 22:00 (UTC)
Spread 0.030


25.29 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee 0.0118%
Overnight fee time 22:00 (UTC)
Spread 0.032


2,036.31 Price
-0.380% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.30

Other precious metals were mixed. Silver was up .09% to $22.50 an ounce, copper was down .26% to $4.29 and platinum was up .54% to $933.90.

In other inflation-related news, the Bank of England surprised the financial world with a 15 basis-point hike from its benchmark interest rate. Meanwhile, the European Central Bank kept interest rates unchanged and announced that its pandemic emergency plans will end in March as scheduled.

Read more: Copper price rallies on supply worries after Peru’s mine shut

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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