Before the publication of Those of the Federal Reserve December Political Session Minutes Wednesday, gold prices hit a six-month high, albeit in thin trading. Spot gold is trading up 0.98% at $1,841.55 an ounce at the time of writing.

The dollar index fell 0.1%, making greenback-priced bullion more attractive to foreign buyers. reported Reuters.

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Gold is one of the best hedges against inflation and economic uncertainty, but in an environment of higher interest rates, the opportunity cost of holding gold is high since the commodity does not yield interest.

The yellow metal posted a fairly flat performance in 2022 SPDR Gold Trust GLD posted a return of just 0.78% over the past year, while the iShares Gold Trust IAU Yield 0.96%.

Experts take: However, experts have been positive on gold this year. Robert Kiyosakithe author of “Rich Dad, Poor Dad,” tweeted his predictions for the yellow metal and silver for 2023.

“I became a gold bug in 1972. I was a naval pilot in Vietnam flying behind enemy lines hoping to buy gold at a discount because the mine was in enemy hands. Found out that the price of gold is the same all over the world. I forecast silver to hit $75 and gold to $3,800 in 2023,” he said.

Ole HansenHead of Raw Materials Strategy saxo bench, said in a note that dollar and yield moves would be a key focus for the gold market, according to the Reuters report.

“The de-dollarization seen by several central banks over the past year, when record amounts of gold were bought, is expected to continue, creating soft bottom under the market,” Hansen said.

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