Amidst Recession Threats, Gold Prices Have Corrected Throughout This Year

Precious metal/jewelry commodity prices have fallen amid the threat of recession due to high inflation in various countries. Platinum, gold, and silver prices have fallen throughout this year, while palladium prices have risen.

According to Yahoo Finance data, the price of gold on the New York Mercantile Exchange (Nymex) was US$1,769 per troy ounce on August 1, 2022. This price is down US$58.5 per ounce (3.2%) compared to the end of December 2021 (year to date/ytd).

Then, the price of platinum (white gold) also decreased by 7.02% (ytd) to US$896.7 per ounce by early August. Similarly, the price of silver also corrected by 12.89% (ytd) to US$20.33 per ounce. Meanwhile, the price of palladium rose by 15.22% (ytd) to US$2,198.6 per ounce on August 1, 2022.

Gold, which usually serves as a hedge against inflation, has not shown a significant price increase until early August 2022. Investor attention is instead focused on energy prices (crude oil), which have seen significant increases this year due to the Russia-Ukraine war.

The price of Brent crude oil rose 26.3% (ytd) to US$100.03 per barrel at the close of trading on August 1, 2022. Disruptions to supply due to the Russian invasion of Ukraine have sent world oil prices soaring above US$100 per barrel.