Gold prices are up about $8 during trading today, Monday, December 19 (2022) as the US currency declines.
The yellow metal is facing the possibility of the US Federal Reserve raising interest rates next year, which has limited the gains from the declining dollar.
Gold prices today
At 08:22 GMT (11:22 Mecca time), the price of gold futures contracts – February 2023 delivery – was up 0.42%, or $7.60, to reach $1807.80 a year ounce.
And it was gold prices It ended trading on Friday, December 16, up by more than $12, on the weak performance of the dollar and the decline of US shares, but recorded weekly losses of about 0.6%.
The price of prompt delivery has also increasedfor yellow metal By 0.18%, to record $1,796.25 an ounce.
The futures price has risen tomoney – Delivery in March (2023) – by 1.06%, registering $23.58 an ounce.
The price has also gone up Platinum Spot about 1.10%, to reach $1005.47 an ounce, and the price of palladium Spot about 1.22%, to $1741.68 an ounce.
On the other hand, the dollar index, which measures the US currency against a basket of 6 major currencies, fell 0.2%, which makes bullion more attractive to holders of other currencies.
gold market conditions
“Gold prices are trying to recoup losses, despite the hawkish takeaway Federal reserveas the dollar’s bullish reaction and yields are even more calculated.”
Gold posted its biggest weekly drop since mid-November on Friday after Federal Reserve Chairman Jerome Powell said the U.S. central bank would make further hikes next year, despite growing recession fears.
Federal Reserve policymakers may need to raise US borrowing costs past a peak of 5.1% and keep them there perhaps through 2024 to counter the high inflation plaguing the economy.
Gold price forecast
“Further pullout by Fed officials could mean a fight for gold,” Yip added Reuters.
Gold is considered a hedge against inflation and economic uncertainties, but rising interest rates have affected bullion’s attractiveness because the asset pays no interest.
According to Reuters technical analyst Wang Tao, gold could retest the support at $1,776 an ounce, and a break below it could pave the way towards the $1,731-$1,748 range.
Australia’s sovereign wealth fund is increasing its exposure to gold and commodities as it warns the future will echo the low-growth, high-inflation era of the 1970s.
A study by World Economics showed business confidence in China hit its lowest level since at least January 2013, reflecting the impact of rising Corona cases on economic activity in the world’s largest bullion consumer.
related topics..
Read also..
