
Bitcoin achieves exponential growth in optimistic markets
Bitcoin crossed the level of $18400, recording its highest level in three years, then it…
Gold prices rose during today’s trading session in the European market, to maintain their daily gains for the second consecutive session. This rise came based on the US dollar’s decline for the first time in three sessions against most global currencies, which was affected by the decline in long-term US Treasury bonds.
Gold rose during spot transactions by about 0.75% until 09:55 GMT, to trade around the level of 1773.24 US dollars per ounce, from the opening level of today’s session at 1760.05 dollars, and reached the lowest price at 1759.47 dollars per ounce.
After yesterday’s trading, the precious metal “gold” managed to achieve a gain of 0.35%, thus recording its second daily gain during the last three sessions, after new developments in the US bond market.
In terms of the US dollar index trading, the index fell during today’s trading by more than 0.25%, approaching to record its first daily losses during the last three sessions, abandoning its highest level in 13 months at 94.56 points, recorded earlier in the last session, reflecting the halt in currency purchases. The US dollar against most major and minor currencies, which contributes to supporting the price movements of gold and the rest of the other metals priced in dollars, according to the inverse relationship between them.
The US 10-year Treasury yield fell on Wednesday by about 0.5%, extending its losses for the second consecutive session, moving away from a four-month high of 1.636, which slowed the purchases of the US dollar as the best investment available.
As we know that the low yield currently supports gold price movements and increases the opportunity cost of acquiring the non-returning metal.
These developments in the US bond market come ahead of the release of several important economic data in the United States on key inflation levels in the country during September, which may provide more clues about when the Federal Reserve will begin to reduce its bond-buying program as a step It is essential that comes before going ahead with raising interest rates.
At 12:30 GMT, the consumer price index is scheduled to be released in the United States, and expectations on an annual basis indicated an increase of 5.4% during the previous month of September from a rise of 5.3% in August, and with the monthly reading, an increase of 0.3 is expected.
And by 18:00 GMT, the Federal Reserve is scheduled to reveal the details of the minutes of the last meeting of the Federal Open Market Committee, which was held on 21-22 last September, during which it indicated the prospects of starting soon to reduce the bond purchase program.
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.