Gold prices rally as US dollar retreats

Gold prices advanced today, Dec. 19, as the US dollar eased in light of looming concerns that the ongoing monetary policy tightening by the Federal Reserve and other central banks could lead to an economic crunch and cripple corporate profits.

Gold futures for February delivery gained 0.34% to $1,806.3 an ounce at 11:33 am Makkah time, with spot prices also up 0.23% to $1,797.2 per ounce. Likewise, silver futures for March delivery jumped 1.12% to $23.58 an ounce.

In addition, the spot price of platinum surged 1.36% to $1,008.05 per ounce, in tandem with a 1.02% hike in the spot price of palladium to $1,735.75 an ounce.

Fed officials earlier indicated that interest rates will continue to rise until inflation is contained. Besides, other key global central banks, including the European Central Bank (ECB), have issued hawkish forecasts.

Markets are also closely monitoring the COVID-19 situation in China as the country's leaders pledged to focus on boosting the economy next year.