Gold prices climbed on Wednesday to their highest level in nearly seven months, on track to tally a gain for a fourth session in a row, driven in part by a weaker U.S. dollar and lower Treasury yields.
Gold for February delivery
advanced $13.30, or 0.7%, to $1,859.40 per ounce on Comex, with prices for the most-active contract poised for their highest finish since June 10, FactSet data show.
Copper prices for March
shed 3.8 cents, or 1%, to $3.7285 per pound.
Gold’s winning streak continued on Wednesday as the dollar and Treasury yields declined, while recession fears and hopes for more central-bank buying bolstered prices of the yellow metal.
“A macroeconomic landscape characterized by heightened recession risks and central banks concluding their tightening cycles bodes well for gold this year, with the next major barrier to watch on the upside being the $1,875 region,” said Marios Hadjikyriacos, senior investment analyst at XM.
Gold declined for much of 2022 after peaking north of $2,000 per ounce in March. Precious metals traders are now watching to see whether it will return to those levels. Other precious metals, including silver and platinum, have also seen strong gains lately.
January “seasonality” tends to boost gold prices against the euro and U.S. dollar, Stephen Innes, managing partner at SPI Asset Management, told MarketWatch.
“” Gold always friends a friend in uncertainty.” ”
— Stephen Innes, SPI Asset Management
“Sure, the reasons are always a bit opaque — why it’s out with the old, in with the gold every January?” he said. “Still, this year is about portfolio diversification, given the significant economic unknowns. Gold always friends a friend in uncertainty.”