Gold Price News: Gold Prices Bounce Back Above $2,000

Gold prices finished the week on a strong note, rebounding back above the $2,000 an ounce level.

Prices reached an intra-day high of $2,005 an ounce, compared with a low of $1,991 on Thursday. The US dollar weakened slightly against other currencies Friday, providing a lift for dollar-denominated assets like gold and silver.

In general, trading activity was subdued in the wider financial markets due to the US Thanksgiving holiday on Thursday and a shortened trading day on Friday, leaving the market focusing on the coming week when liquidity is likely to return to normal levels.

Gold prices remain elevated compared to their levels over the summer period, and continue to take support from heightened geopolitical tensions in the Middle East and a general sense that central banks may not need to raise interest rates any further. That being said, an extended period of leaving rates at current levels could act to curb interest in gold at these higher levels, in favour of other yield-bearing assets. Eventual rate cuts sometime in 2024 could provide an impetus for higher gold prices over the long run.

Looking ahead, this coming week will see a flurry of inflation data, providing potential further clues to likely central bank monetary policy. Wednesday will see the release of the German inflation rate and US GDP figures for Q3, while Thursday will see figures for the Euro Area inflation rate.