The price of gold declines to its lowest level in 2023, and 21 karat records 1690 pounds per gram


Islam Saeed Books

Wednesday, February 15, 2023 06:47 PM

to attest Price per gram of gold Today, Wednesday, in evening trading, a decrease of 10 pounds in the goldsmiths market, to record a gram of 21 carat gold, which is the most popular in the goldsmiths market, 1690 pounds without adding workmanship, which is the lowest price of gold in 2023, while the global price of gold records a decrease to levels of 1836 dollars in spot trading, with a decline It was 1%.

Gold prices today…

18 karat recorded 1449 pounds.

21 karat, a record of 1690 pounds.

And 24 karat recorded 1931 pounds.

The gold pound is 13,520 pounds.

A technical report revealed that gold investors are trying to anticipate the next move of the Federal Reserve, with indications that (the Fed) may need to remain hawkish for a longer period, however, we expect the weaker dollar to remain on a downward path for the rest of the year, which supports gold.

Gold miners are set to report better fourth-quarter profit margins as higher energy and labor costs, which weighed on net income for most of 2022, are expected to ease, according to GoldBillion, and overall sustainability costs (AISC), an industry measure that reflects total Expenses, up by a third in the last four quarters at the biggest miners Barrick Gold Corp and Newmont Corp, but now they’re expected to come down, and gold production costs are down a bit, so we should see better margins in the fourth quarter, and margins should improve in the period from October to December compared to the previous quarter.

It is noteworthy that gold, which is considered a safe asset in times of uncertainty and inflation, reached $2,000 after Russia invaded Ukraine in February 2022, but fell by 21% in the following eight months as the Federal Reserve raised interest rates, which caused most of the damage in 2022. However, margin expansion is expected in 2023 due to higher gold prices.

Gold is at its lowest price since the beginning of 2023

Gold prices fell on Wednesday as the dollar stabilized globally after data showed that inflation rose in the United States last month at the slowest pace since late 2021, which reinforced investor concerns about the Federal Reserve continuing to tighten monetary policy, according to Gold Billion.

Gold fell 1% to $1,835 an ounce at the time of writing, reaching its lowest level since early January 2023.

And the technical report of Gold Billion added that high interest rates discourage investors from investing money in non-yielding assets such as gold, and the US Consumer Price Index (CPI) rose by 0.5% last month, in line with expectations. In the twelve months through January, the consumer price index increased by 6.4%, the smallest rise since October 2021, but slightly higher than expected.

Federal Reserve officials said on Tuesday that the US central bank needs to continue to raise interest rates gradually to beat inflation.

“We must remain prepared to continue interest rate increases for longer than previously anticipated,” said Lori Logan, president of the Dallas Fed. Money markets expect the Fed’s interest rate target to peak at 5.26% in July from the current range. Adults 4.50% to 4.75%.

In the same context, the dollar index rose by 0.18%, which made gold priced in US dollars more expensive for buyers who hold other currencies.

The gold market continues to struggle as prices remain below $1900 an ounce and despite gold’s correction this month, prices have room to fall further as yields remain high while inflation pressures continue to ease.

While prices could drop significantly this year, investor concerns about recession and volatile expectations about a possible rate cut in the second half of the year should prevent gold prices from falling to multi-year lows.

We see moderate growth in 2023 even as the US enters recession in the second and third quarters of the year. However, the slowdown will not be deep enough to force the Federal Reserve to cut interest rates, and going into the second half of the year, we believe that investors’ expectations of a rate cut in 2024 will increase – which should be supportive of gold.






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