On December 22, early morning trading hours around Asia saw a small increase in gold prices. However, because investors are eagerly awaiting economic data for guidance, the price of the yellow metal fluctuated within a narrow range.
In today's holiday-thinned trading, a weaker US dollar also helped to strengthen gold prices. Both the weekly unemployment claim statistics and third-quarter GDP data for the United States are due at 13:30 GMT.
The Cost of Gold in the U.S.
Spot gold was up 0.2% to $1,818.40 per ounce as of 02:25 GMT, while U.S. gold futures were up 0.1% to $1,827.70.
Market players and traders are waiting and watching for hints about inflation from the personal consumption expenditure (PCE) data planned for release on Friday. The PCE report is seen as a key signal; if inflation continues to decline, the dollar will continue to weaken, which will give gold a steadier tone.
Bullion is typically thought of as an inflation hedge, but because it doesn't pay interest, the metal tends to lose its luster.
India's Gold Rate on Thursday
At the time the Multi Commodity Exchange (MCX) started on Thursday, gold prices were trading higher in India. On the MCX today, gold futures with a maturity date of February 3, 2023, increased 0.03% to 55090.00.
On December 22, 2022, the price of 24-carat gold in India is Rs. 5,482 (up 17 Rupees) for 1 gram and Rs. 54,820 for 10 grams (up Rs. 170).
Dubai's Gold Price on December 22
The current gold price was constant when this article was being written. In Dubai, 24 carats cost 220.25 AED per gram. The price of 22 carat gold per gram is 204 AED.
Singapore's Gold Price on December 22
On Thursday, gold prices in Singapore slightly declined.
Each gram of 24K gold costs 84.90 SGD today in Singapore (a decrease of 0.10 SGD from yesterday's price). In contrast, a gram of 22K gold costs 76.30 SGD (-0.10 SGD change from the previous price).
Will Gold Prices Continue to Rise or Fall?
Since falling to a more than two-year low in late September due to predictions of Federal Reserve interest rate increases weakening the appeal of the dollar, gold has increased by around $200.
3,030 new symptomatic COVID-19 infections were recorded in China on December 21. The demand for gold will probably decline if China, the world's largest buyer of metal, implements economic limits once more and the Chinese economy falters. This will be negative for practically all commodities, including gold.