Gold Hits Record High on Weak Dollar, Middle East Tensions

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
TT

Gold Hits Record High on Weak Dollar, Middle East Tensions

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa

Spot gold prices hit a record high on Friday as a weak dollar, expectations of more U.S. interest rate cuts and tensions in the Middle East more than offset muted physical demand in Asia.

Spot gold was up 1.0% at $2,613.09 per ounce by 1058 GMT after hitting a record high of $2,614.49. US gold futures rose 0.9% to $2,638.30.

Non-yielding gold is up 27% so far this year, heading for its biggest annual rise since 2010. It got the latest boost from the start of the Federal Reserve's easing cycle on Wednesday, Reuters reported.

"We expect further dollar depreciation, as the Fed catches up with other central banks who started their cutting cycles earlier. That should be gold price positive," said WisdomTree commodity strategist Nitesh Shah.

Gold could hit $3,000 per ounce in a year amid geopolitical risks and investors hedging against a slowing economy, he added.

However, from a technical point of view, gold's Relative Strength Index moved into "overbought" territory on Friday, at 70.4.

"Over the last few weeks gold's inverse relationship with the US dollar, and indeed US treasury yields, has been very much reinstated," said independent analyst Ross Norman.

"The path of least resistance for gold looks to be to continue higher and, even though it looks well overbought and much above fair value, the momentum trades are behind it and price strength looks in order," Norman said.

Meanwhile, demand from the physical sector in Asia remains light and gold is trading there at a discount to the London price. Top consumer China did not import any gold from a major trading hub Switzerland in August, for the first time in 3-1/2 years.

In other metals, silver gained 1.8% to $31.32, platinum was steady at $989.21 and palladium fell 0.2% to $1,078.58.



GASTAT: Inflation Rate in Saudi Arabia Reached 1.9% in December

The Saudi capital Riyadh. Reuters
The Saudi capital Riyadh. Reuters
TT

GASTAT: Inflation Rate in Saudi Arabia Reached 1.9% in December

The Saudi capital Riyadh. Reuters
The Saudi capital Riyadh. Reuters

The annual inflation rate in Saudi Arabia reached 1.9% in December 2024, according to the General Authority for Statistics (GASTAT).

The Kingdom has the lowest inflation rates among the G20 countries.

The Consumer Price Index (CPI) reflects changes in prices paid by consumers for a fixed basket of goods and services consisting of 490 items. This basket was selected based on the results of the household expenditure and income survey conducted in 2018. Prices are collected through on-site visits to sales points.

CPI statistics are published monthly.