Gold rising due to weak dollar
2022.12.22 07:22
Gold rising due to weak dollar
Budrigannews.com – The focus now shifts to important readings on U.S. economic growth and inflation that are scheduled for this week. On Thursday, fears of a recession in 2023 motivated some safe haven plays into the yellow metal, resulting in a rise in gold prices.
This week, against a weaker, which was partially dented by a less dovish than anticipated stance from the, gold prices rose. The greenback was additionally gouged by developing wagers that U.S. expansion has topped, which could welcome a more slow speed of rate climbs by the Central bank.
by 20:08 ET (01:08 GMT), it had increased by 0.2% to $1,818.58 an ounce and by 0.1% to $1,827.45 an ounce. The yellow metal was close to a five-month high and was up 1.5% for the week.
Markets are currently awaiting revised third-quarter data from the United States. The economy grew by 2.9% in the September quarter, which was higher than expected, according to a preliminary reading. Analysts expect the number to stay the same in the first revision that is due later today.
This week, the United States, the preferred inflation gauge of the Federal Reserve, is the primary focus. It is anticipated that slowed further in November than in October.
However, the index remains well above the annual target range set by the Fed, indicating that the central bank must further tighten policy to curb
Gold prices are likely to remain subdue in the coming months due to the possibility of rising interest rates in developed markets, with the and also sending hawkish signals.
Even though their futures remain uncertain, other precious metals saw gains on Thursday. This week, Japan is also the focus, particularly after the Bank of Japan (BOJ) somewhat tightened policy following nearly a decade of accommodative measures.
Even though China is dealing with a significant increase in the number of cases of COVID-19, prices of industrial metals like copper have risen in response to additional indications of an economic reopening there.
climbed by 0.7 percent to $3.8425 per pound and were expected to rise by over 2% this week.
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However, despite rising interest rates and the possibility of a recession, the red metal’s prices are still trading lower for the year.
