Gold prices were flat on Monday as the markets are grasping the rates hikes
Gold prices muted on Monday as the markets are still processing the wave of aggressive hints from central bank for further interest rates hikes to tame inflation and concerns over slow economy.
The short-term projections for the metal markets are still flat as central banks that raised the interest rate by 50 bp last week implied for more hikes.
The interest rate hikes during the year had a massive effect on the metal markets which raised the cost of non-yielding assets, specifically gold.
Spot gold steadied at $1,793.55 per ounce while gold futures edged up 0.2% at $1,802.90 per ounce.
Gold prices has been supported during the latest weeks by the potentials of smaller rate hikes from Fed side, gold remains traded below the 1% for the year.
The concerns of gold investors raised over elevated inflation and the ongoing rate hike that could lead to slow economy next year.
In the near future, it is predicted that the markets will witness high volatility as the eased Covid-19 curbs will raise the infected cases.
Yet, the latest trade figures manifested that the import of copper in China rose in 2022, where local manufactures took advantage of the latest prices slump as a chance for purchase.