Gold prices fell marginally during trading on Friday, December 30 (2022), and are heading for the second consecutive yearly loss. Sharp interest rate hikes by the US Federal Reserve affected the attractiveness of non-yielding bullion and supported dollar prices.
Gold prices today
At 08:21 GMT (11:21 Mecca time), the price of gold futures contracts – February 2023 delivery – decreased by 0.12%, or $2.10, to record 1823.90 an ounce .
She was gold prices It closed its trading yesterday, Thursday 29 December, with an increase of more than 10 dollars, with the fall of the US currency.
The prompt delivery price of the yellow metal instead rose by 0.11%, reaching 1816.84 dollars an ounce.
The price of futures contracts also fell for silver Delivery in March (2023) – by 0.89%, registering $24.04 an ounce.
And the price has come down Platinum Spot by about 0.30%, to reach $1054.44 an ounce, and the price of palladium Spot about 0.07%, to $1818.88 an ounce.
On the contrary, the index has risen dollar Which monitors the performance of the US currency against the 6 major currencies, by 0.04%, to reach 103.625 points.
gold market conditions
“For most of the year, gold prices have been under pressure from the hawkish Federal Reserve,” said Ilya Spivak, global head of macro at Tatsi Life.
“By the end of 2022, I have seen some recovery and have a lifeline on the outlook for… Federal reserve It could slow the pace of interest rate hikes.”
Gold prices are heading for a 0.5% annual decline; The dollar has emerged as the preferred safe haven amid the Fed’s steep interest rate hikes.
Dollar index hits its best year since 2015; This made gold too expensive for foreign currency holders.
However, gold prices are up nearly $200 from their lowest level in more than two years in September and are on track to hit their best quarter since June 2020, in the hope that the US central bank slow the pace of the increase in interest rates.
The Fed raised interest rates by 50 basis points in December after four consecutive hikes of 75 basis points each.
Higher rates increase the opportunity cost of holding gold; Because it doesn’t pay interest.
Gold price forecast in 2023
“In 2023, gold prices will see a lot of volatility, but they won’t go much further as they will be stuck between a strong dollar and lower US Treasury yields,” Spivak said.
“If industrial demand stagnates in 2023, platinum and palladium are also likely to suffer,” he added. Reuters.
Meanwhile, data showed on Thursday that US weekly jobless claims rose last week but remained in a range indicating the job market was still tight.
China’s net gold imports through Hong Kong fell to a six-month low in November, official data showed on Thursday.
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