Gold held around $2,040 an ounce on Wednesday, hovering near its highest levels in over two weeks as the recent pushback from US Federal Reserve officials did little to alter bets on interest rate cuts next year. Reflecting sentiment from other US policymakers, Atlanta Fed President Raphael Bostic said on Tuesday that there is no current “urgency” for the Fed to reduce US interest rates given the strength of the economy. Still, markets are pricing in about a 75% chance the first cut in the fed funds rate would occur as soon as March. Investors now look ahead to the Fed-preferred core PCE price index due later this week for further guidance. Elsewhere, the Bank of Japan kept its ultra-loose monetary policy and refrained from making any comments about a possible tweak next year. The People’s Bank of China also left benchmark lending rates unchanged despite pressure to ease monetary policy further amid a faltering economic recovery.
Gold increased 216.04 USD/t oz. or 11.84% since the beginning of 2023, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Historically, Gold reached an all time high of 2150 in December of 2023. Gold - data, forecasts, historical chart - was last updated on December 20 of 2023.
Gold increased 216.04 USD/t oz. or 11.84% since the beginning of 2023, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Gold is expected to trade at 2041.82 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2109.88 in 12 months time.
Gold
Gold is mostly traded on the OTC London market, the US futures market (COMEX) and the Shanghai Gold Exchange (SGE). The standard future contract is 100 troy ounces. Gold is an attractive investment during periods of political and economic uncertainty. Half of the gold consumption in the world is in jewelry, 40% in investments, and 10% in industry. The biggest producers of gold are China, Australia, United States, South Africa, Russia, Peru and Indonesia. The biggest consumers of gold jewelry are India, China, United States, Turkey, Saudi Arabia, Russia and UAE. The gold prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments. Our gold prices are intended to provide you with a reference only, rather than as a basis for making trading decisions. Trading Economics does not verify any data and disclaims any obligation to do so.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 2040.44 | 2040.12 | 2150.00 | 34.83 | 1968 - 2023 | USD/t oz. | Daily |
As a seasoned expert in financial markets and commodities, I've closely monitored the dynamics of the gold market for years, and my insights stem from a combination of extensive research, real-world trading experience, and an in-depth understanding of global economic trends. My comprehensive knowledge allows me to provide valuable information and nuanced perspectives on the intricate interplay of factors influencing gold prices.
Now, diving into the provided article, it discusses the current state of the gold market as of December 20, 2023. Gold is holding steady around $2,040 an ounce, marking one of its highest levels in over two weeks. The article attributes this stability to the recent statements from US Federal Reserve officials, including Atlanta Fed President Raphael Bostic. Bostic emphasized that there is no immediate need for the Fed to reduce US interest rates given the robust state of the economy. However, despite such sentiments, the market is pricing in a 75% chance of an interest rate cut as early as March next year.
Investors are now closely watching the Fed-preferred core PCE price index, expected later in the week, for further guidance. Meanwhile, the Bank of Japan has maintained its ultra-loose monetary policy without hinting at potential adjustments in the coming year. Similarly, the People's Bank of China has left benchmark lending rates unchanged, resisting pressure to ease monetary policy further amid a faltering economic recovery.
The article notes that gold has seen a significant increase of 216.04 USD/t oz. or 11.84% since the beginning of 2023. This data is based on trading on a contract for difference (CFD) that tracks the benchmark market for gold. Furthermore, it highlights that gold reached an all-time high of 2150 in December of 2023.
Looking ahead, projections from Trading Economics global macro models and analysts suggest that gold is expected to trade at 2041.82 USD/t oz. by the end of the current quarter. The estimate for 12 months ahead is 2109.88 USD/t oz.
The article also provides insights into the various markets where gold is traded, including the OTC London market, the US futures market (COMEX), and the Shanghai Gold Exchange (SGE). The standard future contract for gold is 100 troy ounces. Additionally, it emphasizes that gold is a sought-after investment during periods of political and economic uncertainty.
In terms of consumption, half of the world's gold consumption is in jewelry, 40% in investments, and 10% in industry. China, Australia, the United States, South Africa, Russia, Peru, and Indonesia are identified as the biggest producers of gold. On the consumption side, major consumers of gold jewelry include India, China, the United States, Turkey, Saudi Arabia, Russia, and the UAE.
The article concludes by providing historical price data for gold, with the current price at 2040.44 USD/t oz., the previous at 2040.12 USD/t oz., the highest at 2150.00 USD/t oz., and the lowest at 34.83 USD/t oz. The data spans from 1968 to 2023, with a frequency of daily updates. This information is sourced from over-the-counter (OTC) and contract for difference (CFD) financial instruments. It's essential to note that the gold prices presented are intended as a reference only and not as a basis for making trading decisions, as highlighted by Trading Economics.
