In anticipation of U.S. inflation statistics and a number of central bank meetings around the world, including the Federal Reserve, gold prices moved lower on Monday. Gold’s spot price fell 0.3% to $1,792.15 per ounce. The price of US gold futures decreased 0.4% to $1,803.70. The U.S. central bank’s final meeting of 2022, planned for December 13–14, is largely anticipated to result in a 50 basis point increase in interest rates.
This week, announcements regarding interest rates are also expected from the European Central Bank and the Bank of England. The U.S. Consumer Price Index (CPI) report for November is also anticipated on December 13. “Gold might benefit if the CPI is weaker as it would increase optimism for a less interventionist Fed… Gold should advance toward the $1,824 high with a slower (rate hike) trajectory, according to Matt Simpson, a senior market analyst at City Index.
Spot silver fell 0.2 percent to $23.50 per ounce; platinum was constant at $1,022.63, and palladium fell 1.1 percent to $1,928.63. While a crucial North American crude pipeline remained closed, the price of oil varied as traders awaited this week’s interest rate decisions. After a drop of 11% last week, West Texas Intermediate prices were stabilizing at around $71 per barrel.
Crude continues on course for its first back-to-back quarterly loss since mid-2019 as the demand picture deteriorates and tight liquidity exacerbates price volatility into the year’s conclusion. With sanctions on Russian oil supplies coming into effect, December was anticipated to be a difficult month, but prices have been hampered by a deteriorating demand picture brought on by dangers to global development.