Eco
Gold prices saw a notable rise today, Friday, fueled by a decline in the U.S. dollar's value, amidst continued investor attention to geopolitical developments in the Middle East and the anticipated global monetary policy trajectory. By 11:15 Moscow time, December gold futures on the Comex exchange ascended by 0.73%, reaching $4432 per ounce. Spot gold contracts similarly increased by 1.1%, settling at $4389.54 per ounce. Analyzing market dynamics, Ahmed Assiri, a research expert at Pepperstone, suggested that the gold-oil relationship might weaken if crude prices face a sharp correction, thereby calming inflation and rate hike expectations. He further noted that severe escalation could lead the world into recession, or a prevailing disregard for financial risks might overshadow the impact of interest rate paths. These movements occur after the U.S. Federal Reserve decided to raise interest rates last Wednesday, with indications of further potential increases in the coming months. Despite this monetary tightening, Goldman Sachs upheld its gold price forecast of $5400 by the end of 2027. The bank explained that while tighter policy might slow the precious metal's ascent, it would not halt it. Although gold is traditionally seen as an inflation hedge, higher interest rates lessen its attractiveness by boosting returns on other assets.
