Gold Rises to More Than 3-week High

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Rises to More Than 3-week High

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices climbed on Thursday to highest in more than 3 weeks as the US dollar and bond yields hit multi-month lows on mounting bets the Federal Reserve will start cutting interest rates as soon as next March.

Spot gold was up 0.5% at $2,086.69 per ounce, as of 0406 GMT, hitting its highest since Dec. 4, when prices raced to a record high of $2,135.40. It looked set to mark its best year in three with a 14% gain.
US gold futures rose 0.2% to $2,096.50 per ounce.
Lower yields and dollar indicate diminished risk around interest rate volatility "and have given gold that extra drive towards $2100 per ounce level," Kyle Rodda, a financial market analyst at Capital.com, said.
Bets on Fed cutting interest rates firmed following cooler inflation data, with traders now indicating an 88% likelihood of monetary policy easing in March, according to the CME FedWatch tool.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Increasing gold's appeal, the dollar index slipped to a five-month low and was set for its worst yearly performance since 2020, while benchmark US 10-year bond yields languished near their lowest level since July.
Going into 2024, gold's movement "depends on whether the markets have gone too ahead of themselves while pricing in rate cuts, and whether recessionary conditions start to emerge in the US," Reuters quoted Rodda as saying.
Market participants now await US initial jobless claims data due at 1330 GMT for further cues on monetary policy.
Spot silver rose 0.7% to $24.42 per ounce and was poised to end the year with a near 2% annual gain.
Platinum rose 0.2% to hit a more than six-month high of $999.00. Palladium rose 0.2% to $1,156.16, but was on track for its biggest yearly decline since 2008.



Saudi Arabia Continues Campaign against Violations of Car Dealers, Showrooms

Vehicle prices in Saudi Arabia have witnessed a significant increase. Asharq Al-Awsat
Vehicle prices in Saudi Arabia have witnessed a significant increase. Asharq Al-Awsat
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Saudi Arabia Continues Campaign against Violations of Car Dealers, Showrooms

Vehicle prices in Saudi Arabia have witnessed a significant increase. Asharq Al-Awsat
Vehicle prices in Saudi Arabia have witnessed a significant increase. Asharq Al-Awsat

The Saudi General Authority for Competition (GAC) continues its campaign to crack down on violations committed by car dealers and showrooms.

On Tuesday, GAC issued decisions to initiate criminal lawsuits against 107 institutions and to study settlement requests submitted by 17 others.

This came after vehicle prices in Saudi Arabia witnessed a significant increase, prompting the concerned government agencies to verify and stop market manipulation.

According to information made available to Asharq Al-Awsat, the Authority investigated last year 155 establishments operating in the automobile sector, and found that 124 institutions have violated the provisions of the Competition Law and its executive regulations.

Violations included agreements between firms on fixing vehicle prices and dividing markets on the basis of geographical areas.

The Authority noted that these violations led to reducing competition and affecting consumer well-being, forcing the Board of Directors to initiate criminal lawsuits against 107 establishments, and to study settlement requests submitted by 17 others.

In January, the Authority approved filing charges against 79 firms, including agents, distributors, and car showrooms, for violating the law and its executive regulations.

The GAC Board held its 85th meeting on Tuesday and decided to initiate a criminal case against a number of establishments, due to allegations of price-fixing, market division, and other anticompetitive practices.

Moreover, the Board reviewed the results of an investigation in the education and industry sectors, and approved taking the necessary measures against six institutions.

It also decided to approve settlement requests submitted by two firms serving cold and hot beverages and pastries, after reviewing the results of the relevant study and investigation.