Gold prices stabilize near two-year low after central banks’ decisions

Gold prices stabilized near their two-year low today, Sept. 23, hurt by the interest-rate hike decisions of central banks around the world, which led the precious metal to record its second straight weekly losses.

Following suit of the US Federal Reserve, the central banks of US, UK, Switzerland and other countries raised the interest rates yesterday in an effort to combat inflation.

US Treasury Secretary Janet Yellen, in her speech during an event organized by The Atlantic magazine, said inflation will 'certainly' come down by next year. However, some fears may prevent the achievement of these expectations, including the ongoing Russian invasion of Ukraine.

Gold futures for December delivery stabilized at $1,680.60 an ounce at 9:53 am Makkah time, but recorded weekly losses of 0.4% so far. Spot prices also kept flat at $1,670.60 an ounce.

Silver futures for December delivery were up 0.12% to $19.64 per ounce, while spot prices for platinum fell 0.93% to $891.99. Meanwhile, palladium prices dropped 1.63% to $2,134.11.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, rose 0.4% to 111.70 points, trading near its highest level since 2002.