Jan 3, 2024: Gold prices saw a decline in Asian trading on Wednesday, stepping back from recent highs as the dollar regained strength amid lingering uncertainty concerning the Federal Reserve’s timing for potential interest rate adjustments in 2024.
While the yellow metal experienced a significant surge in the closing days of 2023, driven by growing optimism around the Fed initiating rate cuts possibly as early as March 2024, it remained within $100 of its December record high.
However, the market sought further confirmation regarding the Fed’s intentions, resulting in a pullback in gold prices. This retracement coincided with a notable rebound of the dollar, which had seen a dip to nearly five-month lows on Tuesday.
Spot gold stabilized at $2,064.16 per ounce, while futures for gold expiring in February slightly declined to $2,072.40 per ounce by 00:04 ET (05:04 GMT), following a decrease of around 0.3% for both instruments on Tuesday.