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(Adds details and updates prices) * Gold faces biggest annual drop since 2015 * Gold has held up reasonably well in growth environment - analyst * Silver poised for worst year since 2014 * For the year, platinum down about 11% so far, palladium 23% By Bharat Gautam Heading into 2022, while concerns about the effect of the
Omicron variant could support gold prices, higher Treasury
yields might tarnish the metal's appeal, said "Gold could see several catalysts for substantial gains next year, be it a Fed policy mistake, stubbornly elevated inflation, or even a spike in geopolitical tensions." Spot gold rose 0.2% to Year-end risk hedging has pushed gold higher overnight, with
resistance at The dollar index is set for its largest percentage rise in six years, driving gold's slide by making greenback-priced bullion more expensive for overseas buyers. Dragged by the dollar, gold prices have declined about 4% so far this year, their worst in six, after big gains over the previous two years, as the global economic recovery reduced demand for the safe-haven metal. Earlier this month, U.S. Federal Reserve policymakers agreed to speed up the wind-down of the central bank's pandemic-era bond-buying program, with a plan to end asset purchases in March to allow time for three interest rate hikes they now believe will be needed next year. Higher interest rates increase the opportunity cost of holding non-yielding bullion, and lift U.S. Treasuries and the dollar, omnipresent influences on gold prices. A Reuters poll in October showed analysts estimated that
gold would average about However, "gold held up reasonably well given all the
pro-growth development and all the normalisation in monetary
policy," said Spot silver rose 0.2% to (Reporting by Bharat Govind Gautam,
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