Gold prices heads to record gains of 14% in 2023‎

Gold prices are heading to record gains for the total of 2023 by about 14%, amid the increase in demand for safe havens in light of the tensions in the Middle East, but they declined slightly during the trading of today’s session, Friday.

According to Reuters, recent inflation data showed a slowdown in US inflation levels, which suggests the possibility that the US Federal Reserve will start reducing interest rates earlier than expected next year.

Lowering the interest rate supports demand for non-returning assets, including gold, and gold prices also received support this year from geopolitical tensions in the Middle East in light of the current war in Gaza.

In terms of trading, gold futures contracts fell by about 0.1% to $2081.70 per ounce, and the yellow metal rose by about 14% since the beginning of this year, and is heading to record the best annual gain since 2020.

Gold prices received support today from the decline in the dollar index, which is heading to record its worst annual performance in 3 years, which enhances the attractiveness of the yellow metal to holders of other currencies.