Gold prices on Monday 27th November 2023 climbed to a more than six-month high as the U.S. dollar weakened.
Investors, it is reported, have placed their bets, suggesting the Federal Reserve is finished with interest rate hikes.
Gold was up around 0.52% at $2,012 per ounce in early afternoon trading (London time). It reached a high of $2,017.82 earlier in the day. Gold futures for December 2023 hit $2,018.90 according to analysts’ data.
CME Fed watch tool
The dollar index, a measure of the greenback against major currencies, was 0.13% lower as markets price in a more than 90% chance the Fed will hold rates at its next two meetings.
Analysts at Goldman Sachs reportedly said that the outlook for 2024 is that gold’s ‘shine is returning’.
The potential upside in gold prices will be closely tied to U.S. real rates and dollar moves.