GBPUSD extended its losses on Tuesday morning in the European market and recorded the third…
Gold prices are recovering from the lowest level in 5 weeks
Gold prices rose during today’s trading session in the European market, this rise came as part of attempts to recover from the lowest level in five weeks, recorded earlier in yesterday’s trading, but despite this rise in prices witnessed today, it is still heading towards recording a new weekly loss.
Due to the strength of the USD performance, which is close to recording the second weekly gain in a row, thanks to strong economic data in the United States, which strengthened the prospects of imminent tightening of US monetary policy.
Gold prices are recovering again
Gold rose during spot transactions today, by more than 0.7% until 09:50 GMT, to trade around the level of 1766.86 US dollars per ounce, from the opening level of today’s session at 1754.02 dollars, and recorded early in the session the lowest price at 1752.52 dollars per ounce.
In US futures, gold rose 0.2% to $1,768.52 an ounce.
It is noteworthy that the precious metal “gold” had ended yesterday’s trading, down by 2.25% in the second consecutive daily loss, and the largest daily percentage loss since the sixth of last August, thus recording its lowest level in five weeks at $ 1745.34 an ounce.
Over the course of this week’s trading, which officially ends at today’s settlement, gold prices are still declining so far with an average of 1.2%, heading towards recording the second consecutive weekly loss, as prices were recently affected by the strong performance of the dollar with investors focusing on buying the currency as the best available investment.
The US dollar is falling
The US dollar index fell during today’s session by about 0.1% due to a noticeable activity of correction and profit-taking operations, after it recorded earlier in the last session its highest level in three weeks at 92.96 points, but it is heading towards recording a net weekly gain, the second in a row, thanks to strong data on retail sales in the United States.
Data on Thursday showed that retail sales in the United States unexpectedly rose in August, after recording a 0.7% increase, while expectations were for a 0.7% decrease, and sales recorded during the month of July, a decline of 1.8%.
It is worth noting that these data reinforced the possibility that the Federal Reserve will reduce the bond purchase program before the end of this year 2021, in a key step that comes before moving forward with the implementation of the plan to increase US interest rates.
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.