Mid-Week Wrap: 06th December 2023
06 D E C E M B E R 2 0 2 3 • I S S U E 3
Market Mood
Gold prices have experienced a noteworthy surge in recent weeks, reaching a new record high of $2,135 per ounce on Monday. This momentum is attributed to the substantial drop in US bond yields, anticipating a more lenient monetary policy from the Federal Reserve. Gold tends to perform favorably when inflation-adjusted bond yields decline, serving as an attractive option despite generating no income. Additionally, the depreciation of the US dollar since mid-October has further contributed to gold's appeal for investors outside the United States.