With a strong dollar, the price of gold falls, the luxury market monitored – La Nouvelle Tribune

With the crisis in Ukrainethe strength of dollar and the increase in the prices of certain raw materials, gold and precious metals in general are facing turbulence. Gold prices, which are expected to fall for a third consecutive month, fell approximately 6.2% this quarter. A combination of rising yields and the U.S. dollar played its part in gold’s underperformance, said Matt Simpson, principal analyst of the City Index. Spot gold fell 0.2% to $1,804.26 an ounce, following falling sharply for six weeks at $1,801.50 in the previous session.

Luxury impacted

The luxury market has experienced a certain frenzy over the past two decades. Carried away by a flourishing Western economy and the arrival on the world market of new rich people. French brands like LVMH took the opportunity to explode, making their owners even richer. Thus we have seen French billionaires in the luxury sector enter the top 10 of the richest men. At the same time, luxury jewelry stores with several brands (all regarding the Messika brand) refined their products and introduced better products. One reason that justifies the increase in jewelry burglaries in cities like Paris.

The fall in prices also affects other metals such as silver. Spot silver fell 0.4% to $20.16 an ounce, and fell regarding 4.5% this week, its biggest drop since mid-May. With investors’ preference for cash, gold might see further significant declines. gold is “weakened by the prospect of interest rate hikes and aggressive central bank inflation rhetoric” said Han Tan, an analyst at Exinity.