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Gold prices are falling due to corrections
Gold prices fell during the trading session today in the European market, on the verge of recording their first daily losses during the last seven sessions. The prices witnessed recently, but it is still heading towards achieving a new weekly gain, the second in a row, thanks to the strengthening of demand for the metal as one of the best safe havens in light of the fears that currently dominate most of the global financial markets.
Gold prices are trading in a limited range
By 09:45 GMT, the spot price of gold was down by about 0.5%, to trade around the level of $1852.31 an ounce, from the opening level of today’s session at $1861.59, and the highest price was at $1862.47 an ounce.
Gold futures in the US also decreased by 0.3%, recording the level of $ 1857.90 an ounce.
It is noteworthy that the precious metal, “gold”, had finished trading yesterday, Thursday, up by 0.7%, in the sixth consecutive daily gain, and it had recorded the previous day, its highest level since last July, at $1868.57 an ounce.
Over the course of this week’s trading, which officially ends at today’s settlement, gold prices are still high so far, with an average of 2.0%, to approach towards recording its second weekly gain in a row, as prices received more support recently thanks to the strong demand for the metal as a safe haven, especially in light of the fears that It currently dominates most of the global financial markets and is related to the acceleration of inflation in most parts of the world, especially in the United States.
US dollar index continues to rise
As for the US dollar index trading, the index rose during today’s session by about 0.1% to maintain its daily gains for the third consecutive session, thus recording its highest level in 16 months at 95.26 points, reflecting the continued strength of the US currency’s performance against most major and minor currencies, which Currently, it negatively affects the price movements of gold and the rest of the other metals priced in dollars due to the existence of an inverse relationship between them.
This current rise in dollar levels comes thanks to the continued focus of investors on buying the currency as the best available investment, especially after the frightening inflation data in the United States strengthened the chances of the Federal Reserve raising US interest rates as soon as possible.
The pace of inflation in the United States recorded a historic jump, as the annual consumer price index rose by 6.2% last October, the fastest pace since 1990, exceeding economic expectations that indicated a rise of 5.8%, which led to an acceleration in demand levels for the metal. Being one of the best hedging tools against rising price levels.
Returning to other precious metals trading, silver fell during spot transactions by about 0.5% to the level of $25.10 an ounce, but it is in the process of recording the best weekly gain in three weeks.
Platinum lost 0.4% to $ 1081.90, and palladium also fell by about 0.5%, recording the level of $ 2048.91 an ounce.
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.