KUWAIT CITY, Dec 30: Gold prices in 2023 recorded the best annual performance in three years amid increasing expectations for a cut in interest rates in the United States early next year, as well as high demand for safe havens in light of the tensions in the Middle East and the continuation of the war in Ukraine, reports Al-Seyassah daily.
Gold rose in instant transactions by 0.13 percent during Friday’s session, to $2,062.98 per ounce. It rose by about 13.1 percent this year, which is the largest annual gain since 2020.
US gold futures fell 0.2 percent to $2,079.10 per ounce.
Data showing a slowdown in inflation reinforced expectations that the Federal Reserve would cut interest rates.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
The dollar index against a basket of currencies recorded its worst annual performance in three years, which enhances the attractiveness of gold for holders of other currencies.
As for other precious metals, silver fell in spot transactions by 0.75 percent during Friday’s session to $23.79 per ounce, and on an annual basis, prices decreased by about 0.66 percent.