(Bloomberg). Gold continued to suffer its largest daily loss since November. Investors weighed U.S. inflation data, and counted down until Wednesday’s conclusion of the Federal Reserve’s final meeting.

In November, the prices paid by U.S. manufacturers saw a record year-end increase of nearly 10%. This surge will ensure that inflationary pressures continue well into 2022. This makes it more likely that the Fed will tighten its monetary policies, which are weighing heavily on precious metals and other non-interest bearing assets. 

Bloomberg Economics predicts that Fed policy makers may announce a double-digit increase in the rate of bond-buying taper, and set out steeper paths for anticipated interest rate increases. 

Bullion could suffer its first ever annual loss for three years, despite decreasing monetary support from central bankers. But uncertainties about the effect of the virus variant may increase demand for haven asset. Although omicron spreads faster than any other strain of Covid-19, the World Health Organization worries that it is being dismissed lightly.

After dropping 0.9% on Tuesday, the price of an ounce rose 0.1% to $1773.18 per ounce. After gaining 0.3% the previous session, the Bloomberg Dollar Spot Index fell 0.1%. The silver price rose, while platinum fell and palladium was at its lowest since March 2020. 

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