Gold records its highest level in more than two weeks with bets ‎on reducing interest rates

Gold rose to its highest level in more than two weeks, Friday, December 22, rising for the second week, with the decline of the dollar and US Treasury bond yields due to increasing expectations that the Federal Reserve will lower interest rates early next year.

The spot price of gold rose 0.4% to $2,052.69 per ounce as of 20:50 GMT, its highest level since December 4, putting it on track for a weekly gain of 1.7%.

US gold futures were settled up 0.9% to $2,069.1.

“Precious metals, including gold, are driven by very strong expectations for interest rate cuts with the market pricing in a Fed cut in March and a total of 150 basis points in 2024,” New York-based independent metals trader Tai Wong said. According to Reuters…

The dollar index recorded its lowest levels in about five months, making gold more attractive to foreign buyers. Benchmark 10-year bond yields were also near their weakest levels since July.

Philip Strebel, chief market strategist at Blue Line Futures in Chicago, said that gold will continue to receive support from weak Treasury bond yields, the US dollar index, and concerns about the economic slowdown.

He added: “The current technical breakthrough may push prices to the $2,100 level. It could retest the highest levels of recent decades.”

Silver fell 1.2% to $24.12 per ounce, after touching its highest level in two weeks earlier. Palladium fell 0.9% to $1,202.46 per ounce, after reaching its highest levels since October 2 earlier.

Platinum rose 0.7% to $969.67, its highest level since September 1. The three metals are heading towards achieving gains for the second week in a row

‎