A rise in interest in Fed rate reduction bets caused gold to rise by 1%

 A rise in interest in Fed rate reduction bets caused gold to rise by 1%

By 9:43 a.m. ET (1443 GMT), spot gold had risen 1.2% to $2,069.34 an ounce, its highest level since December 4. This suggests a 1.8% weekly gain.

With the dollar and US Treasury yields down due to growing anticipation that the Federal Reserve would lower interest rates early in the next year, gold surged 1% to a nearly three-week top on December 22.

By 9:43 a.m. ET (1443 GMT), spot gold had risen 1.2% to $2,069.34 an ounce, its highest level since December 4. This suggests a 1.8% weekly gain.

US gold futures increased to $2,081.60, up 1.48%.

According to Tai Wong, an independent metals trader located in New York, "precious metals, including gold, are being driven higher on prospects of a Fed cut in March and a very forceful rate cut in 2024 with a total market price of 150 bps in 2024."

"It's priced with excellence but the market usually discounts it very enthusiastically."

Dec. 22: Despite official statistics indicating that price pressures were still mild last month, traders continued to hold onto the belief that the U.S. central bank would begin reducing rates in March.

November saw a decline in annual US inflation below 3% and a continuation of the easing of underlying pricing pressures.

Foreign buyers are becoming increasingly interested in gold as the dollar index is trading close to a five-month low. The yield on the benchmark 10-year bond was almost at its lowest point since July.

Philip Strible, chief market analyst at Blue Line Futures in Chicago, said that fears about an economic slowdown and the US dollar index, together with lower Treasury rates, would continue to strengthen gold.

In fact, the present technical breakthrough may drive prices as high as $2,100. This may bring those recent contract highs back.

Physical demand for gold in India declined precipitously as a result of rising local pricing.

Silver increased 0.8% to $24.59 an ounce, among other commodities. Palladium increased 2.5% to $1,244.18 while platinum increased 1.8% to $980.55. For the second week in a row, all three metals saw increases.