FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Until the first week of September, the price of gold, widely considered as a safe haven was up more than 17 percent, making it one of the top performers of the year. However, since then gold has run into trouble and has so far lost more than 5 percent of its value. The yellow metal is currently trading at $1278 per troy ounce. Let’s take a look at the factors shadowing over the yellow metal bulls,
- U.S. Federal Reserve: Until the second week of September, the market was pricing the next hike in the 2nd half of 2018. As the meeting was closing in, the market started pushing the probability of a December hike higher and after the meeting, the market is almost certain of a hike. An upcoming hike in a disinflationary environment is heavily weighing on gold.
- Marching equities: Gold benefits from risk aversion in the equity market. However, this year, S&P 500 has so far returned 13 percent. Since the second week of September, the market has returned more than 5 percent. It is not just the S&P 500 but equities are marching all across the globe.
- U.S. tax plan: After healthcare failed to pass through Congress, lawmakers have turned their focus on President Trump’s tax proposals with an aim to pass it this year. That is creating a risk-affinity environment.
