Gold prices extend gains, notch highest settlement since mid-May

Gold prices extended their gains at the close of trading today, Nov. 28, as investors weighed economic data that showed a possible recession in the US, with forecasts suggesting inflation is likely to subside to 5.7% next year amid dwindling expectations for further interest rate hikes.

Bullion for December delivery skyrocketed by 1.35%, or $27.60, to end at $2,040 an ounce, hitting the highest close since May 17 after touching $2,044.10 per ounce in early trading.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, fell 0.35% to 102.86 points at 09:39 pm Makkah time, after reaching 102.61 points earlier in the session — the lowest level since Aug. 11.

Federal Reserve Governor Christopher Waller said he is “increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%,” which negates the need for further additional monetary policy tightening.

A survey from the Conference Board indicated that its expectations index for US consumer confidence advanced to 77.8 in November, remaining below 80 — a level historically associated with a recession within the next year.