Gold price rises while USD weakens

Gold rose on Monday morning, setting above $1,800 per troy ounce, Report informs.

The prices of the precious metal are buoyed by the weakening of the dollar against world currencies.

February futures for gold on the New York Comex exchange rose by $2.2, or 0.12%, to $1,802.4 per troy ounce. March silver futures rose 0.4% to $23.422 an ounce.

The dollar index (the exchange rate against a basket of currencies of six US trading partners) fell by 0.14% to 104.55 points. The dollar's depreciation holds back the cost of gold, which in this case, becomes more affordable when bought in another currency.

Traders continue to expect the measures the US Federal Reserve System will take on the rate. In December, the regulator expectedly raised it to 4.25-4.5% per annum, and the head of the regulator, Jerome Powell, noted that the Fed considers it reasonable to keep the rate at a high level until the decline in inflation turns out to be stable and sustainable.

According to the CME Group, 73% of experts expect the pace of the rate increase in February 2023 to be slowed to 25 basis points and the rate will be 4.5-4.75%. In December, it was raised by 50 basis points, and before that, there were four increases of 75 basis points in a row.

Gold is sensitive to signals from the Fed on the rate.