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Domestic gold price

Domestic gold price fluctuations

World gold price developments

World gold prices increased dramatically in the context of the falling USD. Recorded at 6:00 a.m. on December 2, the US Dollar Index, which measures the fluctuations of the greenback against 6 major currencies, was at 103.125 points (down 0.29%).

Gold rose from an all-time high on Friday afternoon after holding above $2,000 an ounce all week. The precious metal also saw its first monthly close above $2,000 an ounce on positive U.S. inflation data and dovish comments from members of the U.S. Federal Reserve.

Fed Chairman Jerome Powell acknowledged that the Fed needs to act cautiously when there are signs of economic weakness. Mr. Jerome Powell increased traders' confidence that the US Central Bank has completed tightening monetary policy and could cut interest rates from March next year.

Powell said the Fed is not thinking about cutting interest rates yet. However, analysts said it is clear that the Fed will not raise interest rates when the economy starts to slow. Spot gold rose sharply after Powell's speech, reaching $2,075.09 an ounce at one point, beating its previous all-time high of $2,072.49 reached in 2020.

The latest Kitco News weekly gold survey shows that investors maintain an optimistic outlook for the week ahead, while the majority of market analysts are also optimistic about gold's short-term prospects.

Adam Button, head of currency strategy at Forexlive.com, said that with interest rate cuts coming and the impact of the US dollar on gold prices being extremely strong, a decline in the US dollar would support the rally.

Meanwhile, Adrian Day - Chairman of Adrian Day Asset Management maintained a neutral stance on gold. This expert expects gold prices to remain unchanged next week: "Gold needs to digest the big price increase in October and especially from the beginning of November."

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