new Delhi: Sleep The US dollar gained ground on Wednesday but prices traded in a range-bound range in weak trade due to lack of any fresh triggers.
Spot gold was down 0.2% at $1,810.57 an ounce as of 0532 GMT. US gold futures fell 0.2% to $1,818.60.
Harish V, Head of Commodity Research, Geojit Financial Services, said that limited volatility is seen in gold prices ahead of New Year holiday as trading activity is light ahead of New Year holiday and no major economic developments this week. Data is not defined.
The dollar index gained 0.1%, making greenback-priced gold more expensive for overseas buyers, while the benchmark 10-year yield slipped from a one-month high in the previous session.
Gold has risen nearly $200 from a more than two-year low hit in late September as the dollar’s appeal was dampened by hopes that the US Federal Reserve would slow the pace of interest rate hikes.
The Fed reduced the pace of rate hikes to 50 basis points (bps) after four consecutive increases of 75 bps in December. However, Fed Chairman Jerome Powell has warned that the Fed will raise rates further next year.
Higher rates increase the opportunity cost of holding bullion, which pays no interest.
Harish said dollar performance, inflation data, Fed’s rate hike path, developments in China and geopolitical tensions will be the key factors impacting gold prices in 2023.
“Easing curbs in China on demand growth expectations will be positive for industrial metals.”
On Monday, top gold consumer China scrapped its COVID-19 quarantine rule for incoming travelers, a major step towards easing restrictions on its borders that have been largely closed since 2020 .
in other precious metals spot silver down 0.2% to $24.00 and platinum fell 0.7% to $1,012.80. Durg fell 0.1% to $1,828.13.
Spot gold was down 0.2% at $1,810.57 an ounce as of 0532 GMT. US gold futures fell 0.2% to $1,818.60.
Harish V, Head of Commodity Research, Geojit Financial Services, said that limited volatility is seen in gold prices ahead of New Year holiday as trading activity is light ahead of New Year holiday and no major economic developments this week. Data is not defined.
The dollar index gained 0.1%, making greenback-priced gold more expensive for overseas buyers, while the benchmark 10-year yield slipped from a one-month high in the previous session.
Gold has risen nearly $200 from a more than two-year low hit in late September as the dollar’s appeal was dampened by hopes that the US Federal Reserve would slow the pace of interest rate hikes.
The Fed reduced the pace of rate hikes to 50 basis points (bps) after four consecutive increases of 75 bps in December. However, Fed Chairman Jerome Powell has warned that the Fed will raise rates further next year.
Higher rates increase the opportunity cost of holding bullion, which pays no interest.
Harish said dollar performance, inflation data, Fed’s rate hike path, developments in China and geopolitical tensions will be the key factors impacting gold prices in 2023.
“Easing curbs in China on demand growth expectations will be positive for industrial metals.”
On Monday, top gold consumer China scrapped its COVID-19 quarantine rule for incoming travelers, a major step towards easing restrictions on its borders that have been largely closed since 2020 .
in other precious metals spot silver down 0.2% to $24.00 and platinum fell 0.7% to $1,012.80. Durg fell 0.1% to $1,828.13.