Gold prices trading below $1,810

Gold rose moderately on December 9 morning, trading just below $1,810 a troy ounce, Report informs referring to the auction data.

The weakening of the dollar supports the price of the precious metal.

The price of February futures for gold on the New York Comex exchange rose by $7.15, or 0.4%, to $1,808.65 per troy ounce. March silver futures rose 1.06% to $23.492 an ounce.

The dollar index (the exchange rate against a basket of currencies of six US trading partners) fell by 0.22% to 104.54 points. The weakening dollar makes gold more affordable to buy in other currencies.

Markets are looking forward to the US Federal Reserve meeting next week. At the same time, most analysts expect the regulator to slow down the key rate hike. Strong statistics on the labor market and inflation supported these expectations, although inflation in the US since the beginning of the year has not fallen below 7.5% with a target level of 2%.

According to the CME Group, 79% of experts expect the Fed to raise the rate by 50 basis points, to 4.25-4.5% per annum. Prior to this, the regulator raised the rate by 75 basis points four times in a row.

Global central banks are raising rates in an attempt to contain high inflation. At the same time, it reinforces fears of a recession in the global economy.

Gold is sensitive to the Fed’s signals, as this affects the dollar, which in turn affects the value of the precious metal.