Gold prices rise to recover from its lowest level in five months

Mohammed Abdelkhalik
August 16, 2021
Gold prices

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Gold prices rose during trading today in the European market, to approach towards recording their first daily gains during the last five sessions, in an attempt to recover from the lowest level in five months recorded earlier in trading.

In order to re-evaluate these possibilities, investors are awaiting, later today, several important economic data on the pace of inflation in the United States during the month of July.

Gold prices resume rising

Gold prices

At exactly 09:20 GMT, the spot price of gold was up by about 0.4%, to trade around the level of 1836.59 US dollars per ounce, from the opening level of today’s session at 1829.33 dollars, and it reached the lowest price at 1824.11 dollars per ounce.

And gold also rose in US futures, by 0.1%, recording the level of 1835 dollars an ounce.

At the conclusion of yesterday’s trading, the precious metal “gold” lost 0.1% in the fourth consecutive daily loss, after it recorded the previous day its lowest level in five months at 1683.67 dollars an ounce.

Dollar movements

In terms of the US dollar index trading, the index rose during today’s session by about 0.15% to extend its gains for the fourth consecutive session, thus recording its highest level in four months at 93.20 points, reflecting the continuation of the broad purchases of the US currency against most major and minor currencies, which It is currently pressuring negatively on the prices of gold and other metals priced in dollars.

This rise in the levels of the US currency comes supported by the continued acceleration of investor demand for it as the best investment available in the other foreign exchange market, especially after the release of strong data on the US labor market, which strengthened the chances of the Federal Reserve’s announcement that it would reduce the purchase program. Bonds, in a key step that comes before going ahead with raising US interest rates.

Expected economic data

In order to re-evaluate the possibilities of tightening monetary policy, market participants are awaiting later today, many important economic data on the pace of US inflation last July, and if these data are strong, they will provide more support for the US currency against most global currencies.

Where it is scheduled at 13:30 GMT to release the US consumer price reading, and expectations on an annual basis indicate an increase of 5.3% during the month of July from a rise of 5.4% in June, and with the monthly reading, it is expected that a rise of 0.5% from a rise of 0.9% the previous month.

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.