Gold prices rise by $8 and are heading to record weekly gains

Gold prices rose about $8 during today’s trading, Friday, January 13 (2023), and are heading for a fourth consecutive weekly gain.

This comes in conjunction with the decline of the US dollar, amid expectations that the Federal Reserve will raise interest rates at a slower pace.

Gold prices today

By 08:13 a.m. GMT (11:13 a.m. Mecca time), the price of gold futures contracts – for February delivery 2023 – increased by 0.42%, equivalent to $ 7.90, to reach $ 1906.70 an ounce.

She was gold prices It ended its dealings, yesterday, Thursday, January 12, with an increase of about $ 20, with the decline of the US currency.

The price of immediate delivery has increased tofor yellow metal By 0.35%, to record $1903.81 an ounce.

On the other hand, the price of futures contracts decreased for silver March delivery (2023)- by 0.20%, recording $23.96 an ounce.

And the price has increased Platinum Spot by about 0.25%, to reach $ 1073.66 an ounce, and the price of palladium Spot by 0.27%, at $1804.18 an ounce.

At the same time, the index declined dollar Which monitors the performance of the US currency against 6 major currencies, by 0.13% at 102.12 points, and is heading for the worst week since November 11, 2022.

US inflation data

Data on Thursday showed that US consumer prices fell for the first time in more than two and a half years in December, giving hope that inflation was now on a sustained downward trend.

“Usually gold goes up when inflation picks up,” said Edward Meir, metals analyst at ED&F Man Capital Markets. “But we see gold prices continuing to rise despite the slowdown in inflation because the market is looking for a lower dollar and a smaller increase in interest rates.”

He added, “Gold prices are facing some resistance around the $1,900 level, so perhaps it will not only continue to rise, but there may be some selling at these levels.” Reuters.

interest rates

Philadelphia Federal Reserve President Patrick Harker said Thursday that while the central bank needs to raise interest rates more to calm inflation, it will likely do so at a much slower pace.

Gold is seen as a hedge against inflation, but higher interest rates increase the opportunity cost of holding the asset.

For his part, Atlanta Fed President Rafael Bostick said inflation data could allow the Fed to backtrack to a quarter-point hike in interest rates at its next meeting.

Elimination Federal Reserve Interest rates fell by 75 basis points four times last year, before slowing to 50 basis points in December.

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