Global gold prices have seen a rally during trading today, Friday, November 25, 2022, supported by the decline in the price of the dollar.
Gold prices rose 0.3% in spot trading to $1,755.15 an ounce as of 9:24am Cairo time, after rising 0.6% over the past week, and US gold futures they rose 0.9% to $1,760.40.
Jigar Trivedi, an analyst at Reliance Securities, said gold could rebound to $1,790-1,820 by the end of December, driven by demand for safe-haven assets and dollar weakness amid an accommodative Fed.
Most traders expect a 50 basis point rate hike at the December Fed meeting.
But the December meeting will be a “black box” event as expectations diverge before and after cooler-than-expected US inflation data, leaving gold sensitive to upcoming data as buyers seek higher conviction that the prospects for a current rate hike are good.
The higher rates have maintained gold’s traditional status as a safe haven amid inflation and other uncertainties this year, translating into a higher opportunity cost of holding the asset unpaid.
In other metals terms, silver prices fell 0.2% to $21.46 but rose 2.7% for the week. Platinum was up 0.7% to $994.38 and palladium was up 0.4% to $1,887.50.
