Reuters reported that gold prices edged up a slightly in response to a flat dollar and slightly firmer oil prices. However, gold is still on track for its third straight year of losses.
According to Reuters:
Gold is likely to end 2015 down nearly 10 percent, mostly due to expectations that higher U.S. interest rates will hit demand for the non-interest-paying metal.
Spot gold rose 0.2 percent to $1,070.50 an ounce by 1245 GMT, after losing 0.6 percent in the previous session. Volumes were thin in the last trading week of the year.
INTL FCStone analyst Edward Meir told Reuters:
Over the short-term, the precious metal will likely trend sideways, as funds look to close out the year and contemplate heading into next year with a fresh slate.
Meanwhile, ABN Amro analyst Georgette Boele commented:
Gold’s downtrend is likely to continue throughout 2016… there are going to be more U.S. rate hikes than the market is anticipating the next year.