WGC: Gold Prices Dipped in January, Despite Seasonal Tailwinds

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) suggests that gold prices fell during the month of January this year, despite seasonal tailwinds. The prices of the yellow metal had touched record highs at the end of the previous year.

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According to the report, the investor outflows and positive economics weighed on gold in January 2023. The prices retreated to $2,053 per Oz to finish the month 1% lower. The global gold outflows surged higher to 51 tonnes. The strong dollar on the back of surprisingly stronger economic data along with fading hopes of an early monetary policy cuts too weakened the prices of the commodity. As per market experts, the policy easing is likely to be pushed back beyond March 2024.

The Red Sea tensions are expected to compound inflation risks, WGC noted.

Looking forward, the economic conditions are likely to remain at ease at least in the short term. However, higher bond yields are likely to put pressure on equities, which in turn could result in stock market volatility. The uncertainties surrounding the U.S. Presidential elections combined with geopolitical tensions could lead to moderate investor interest in gold as a safe haven asset.