2022.12.3018:14:00UTC+00Gold Futures Settle Flat

Gold futures settled roughly flat on Friday, despite the dollar losing some ground.

The dollar index dropped to 103.39, losing nearly 0.5%.

Gold futures for February settled at $1,826.20 an ounce, up $0.20 from the previous close, after moving in a very tight range between $1,819.80 and $1,831.80.

Gold futures, which tumbled to more than 2-year low in September, recovered remarkably well after that, and shed just about 0.5% in 2022.

Silver futures for March ended down $0.210 at $24.040 an ounce, while Copper futures for March ended lower by $0.0135 at $3.8105 per pound.

Craig Erlam, Senior Market Analyst at OANDA, says the outlook for the yellow metal still looks very positive with central banks nearing peak interest rates and the economic outlook rather bleak.

In U.S. economic news, a report released by MNI Indicators showed a bigger than expected slowdown in the pace of contraction in Chicago-area business activity in the month of December.

MNI Indicators said its Chicago business barometer climbed to 44.9 in December from 37.2 in November, although a reading below 50 still indicates a contraction. Economists had expected the index to rise to 41.2.

The bigger than expected rebound came after the Chicago business barometer fell to its lowest reading since the 2008/09 global financial crisis, excluding the 2020 pandemic shock.

Traders remained focused on the outlook for China after several countries, including the U.S., have decided to insist on negative Covid tests for travelers arriving from China.