Gold prices give up the week’s peak due to corrections and profit-taking

Mohammed Abdelkhalik
September 12, 2020

Ad Disclosure

Gold Prices ( XAU/USD): 12th September 2020

Gold prices retreated in the European market on Friday to give up its highest level in a week recorded earlier in yesterday’s trading, due to the activity of corrections and profit-taking, but the decline remains limited so far due to the fall of the US dollar against a basket of global currencies.

Gold prices fell by 0.4% to $ 1,937.34, from today’s opening level of $ 1,945.31, and reached the highest level at $ 1,949.48.

The precious metal “gold” ended yesterday’s trading steadily on CFD platforms such as Plus500, after earlier in trading, it hit its highest level in a week at $ 1,966.53 an ounce.

Gold prices - 12th September 2020

And pressure on the metal on Thursday, comments by European Central Bank President Christine Lagarde, during which he reduced the risks of the euro’s rise and its negative impact on the economic recovery in Europe.

Gold prices sables although USD decline

The dollar index fell on Friday by 0.2%, to resume the decline that stopped yesterday, reflecting the decline in the US currency against a basket of major and minor currencies, which is in the interest of the prices of gold and other metals denominated in the US dollar.

The current decline in dollar levels comes in light of slowing demand for the currency as the best alternative investment, especially after better than expected data on producer prices in the United States, which reduced concerns about inflation levels in the largest economy in the world.

The gold holdings of the SPDR Gold Trust, the largest global index fund backed by gold, remained unchanged yesterday, with the total continuing at 1,252.96 metric tons, which is the highest level since August 11th.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.