A weaker dollar and increased prospects of future rate hikes that are less aggressive helped gold prices extend their new year surge and rise more than 1% to their highest level since mid-June. The price of spot gold increased by 1.2 percent to $1,860.64 per ounce, reaching its highest level since June 13. U.S. gold futures increased by 1.1% to $1,867.
According to Hareesh V, head of commodity analysis at Geojit Financial Services, “ongoing recession concerns and geopolitical tensions are anticipated to enhance gold’s safe-haven appeal in 2023. When the Fed begins to adopt softening policies, there is a probability that gold will see increased inflows.
Silver increased by 1.4% to $24.3255 per ounce, platinum increased by 0.6% to $1,090.58, and palladium increased by 0.8% to $1,723.38.
Concerns about weak demand as a result of the status of the global economy and China’s mounting COVID cases led to a steep decline in crude oil during this time. In comparison to U.S. crude, which declined $2.20 to $74.73 per barrel, Brent futures fell $2.39 to $79.71 per barrel.