NEW YORK – Reuters: Gold prices rose yesterday and are on track to record their best annual performance in three years, supported by expectations that the Federal Reserve will start easing its monetary policy in March next year.
Gold settled at $2,064.75 an ounce by 12:48 GMT in spot transactions. But U.S. gold futures fell 0.4 percent to $2,074.50 an ounce.
The yellow metal has risen about 14 percent since the start of this volatile year, which saw the price move between lows near $1,800 earlier in the year and October, before hitting a record high of $2,135.40 on Dec. 4.
“If there are strong expectations for monetary easing from the Federal Reserve and an unexpected increase in geopolitical risks, gold could reach a new record high, with the highest possibility at $2,300,” Intesa St. Paul's economist Daniela Corcini said.
The dollar index is headed for a two percent decline in 2023. Yields on the 10-year Treasury note are at their lowest level since July.
As for other precious metals, silver fell 0.9 percent to $23.7239 an ounce in spot transactions and looks set to post a one percent decline for the year.
Platinum was up 0.1 percent at $1,003.24 an ounce, while palladium was down 1.5 percent at $1,116.31. Both metals are headed for annual declines, with palladium down about 38 percent, its biggest decline since 2008.