The price of gold is close to recording its first annual increase in 3 years
The yellow metal is heading towards a 13% rise at the end of the year as markets bet on a US interest rate cut
The price of the yellow metal stabilized on the last trading day of this year, bringing it closer to ending the year higher by about 13%. The price of the metal fell on Thursday, with Treasury bond yields rising from their lowest levels in months after a US debt auction was met with weak demand from investors.
However, bond yields have recorded a sharp decline since last October, which has been in favor of gold, which does not offer returns, while traders have strengthened their bets on lowering interest rates over the next year. Swaps markets expect approximately 80% to begin reducing US interest rates by next March.
The decline in the dollar also supported the price of gold, as this enhanced the attractiveness of dollar-denominated commodities, while the green currency is expected to go through its worst year since the start of the pandemic.
There was a slight change in the price of gold, reaching $2,065.7 per ounce at 11:25 am local time in London, and the prices of silver and palladium declined, while there was a slight change in the price of platinum.