Dollar slips as BOJ announces change to yield curve policy
Traders should keep gold well bid going into 2023 analyst
Silver jumps more than 3

Dec 20 Reuters Gold prices jumped 1 to above the key 1,800 level on Tuesday as the dollar dropped after the Bank of Japan39;s surprise policy tweak, while markets also weighed the outlook for the U.S. Federal Reserve39;s interest rate strategy.

Spot gold rose 1.1 to 1,806.34 per ounce by 1037 GMT. U.S. gold futures gained 1 to 1,816.20.

Lifting bullion39;s appeal among overseas investors, the dollar index decided to review its yield curve control policy.

Spot gold is being given another chance to shine thanks to the dollar39;s pullback, said Han Tan, chief market analyst at Exinity, adding, the next leg down for the dollar should send spot gold onto a new cycle high past 1,824.50.

Traders and investors should keep the precious metal well bid going into 2023, as markets brace for the prospects of a U.S. recession and the accompanying Fed pivot, he added.

Fed Chair Jerome Powell last week said the central bank will deliver more interest rate hikes next year even as the economy slips towards a possible recession.

Bullion has shed more than 260 since its March peak as central banks stepped up efforts to fight soaring inflation.

Higher interest rates increase the opportunity cost of holding bullion that pays no interest.

On the chart, 1,800 continues to be a tricky area for buyers which already faced a reversal back in…