Gold tops $1,900 for first time since April 2022

Gold prices crossed the $1,900 per-ounce threshold for the first time in nine months today, Jan. 13, as traders assessed the Federal Reserve's pace of interest-rate hikes as well as the overall economic situation.

Last week, Treasury Secretary Janet Yellen notified Congress, in a formal letter, that the US is set to reach its statutory debt ceiling on Jan. 19. She will then resort to "extraordinary measures" to prevent default until early June.

In economic data, the University of Michigan’s US Index of Consumer Sentiment (ICS) showed that the initial reading for the current month increased, with inflation forecasts tumbling for the fourth consecutive month.

As for gold, the greenback-priced bullion continues to benefit from safe-haven demand amid uncertainty over the Fed’s policy agenda, which is currently aimed at slowing the pace of monetary tightening while countering inflation.

Upon settlement, gold for February delivery jumped 1.2%, or $ 22.90, to $1,921.70 an ounce — the highest since April 2022.

Total gold transactions gained 2.8% week-on-week (WoW).

The US dollar index, which gauges the greenback's strength against a basket of six currencies, witnessed a marginal drop of 0.05% to reach 102.191 points at 9:59 pm Makkah time.