Gold prices climb to 7-month high

Gold prices hit the highest level in about seven months today, Jan. 3, amid growing fears about prolonged tightening monetary policy and the likelihood of a global economic slump.

Financial markets are flashing warning signs that the global economy may teeter on the edge of recession this year in light of the tight stance on monetary policy by central banks worldwide.

Later this week, investors are awaiting the release of weekly US jobless claims data and minutes of the US Federal Reserve’s last meeting.

In terms of trading, gold futures for February delivery gained 1.1%, or $19.90, to close at $1,846.10 an ounce — the highest since June 16, 2022.

Similarly, the US dollar index, which gauges the greenback's strength against a basket of six currencies, advanced by nearly 1% to 104.556 points at 9:55 pm Makkah time.