Comex gold contract Delivered in Dec. Plus $2.80 to close at $1,636.20/ounce.
A weakening dollar will increase the attractiveness of gold. by making gold contracts cheaper for holders of other currencies
However, the positive range in gold prices was constrained by concerns regarding the Federal Reserve’s accelerating interest rate hikes. The Fed will continue to raise interest rates in 2023, contrary to previous expectations that the Fed will cut interest rates this year.
A rebound in interest rates will increase the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
