Gold prices fell during the trading session today in the European market, to deepen their…
Gold prices continue to decline due to the continued USD rising
Gold Prices Outlook – 2oth July 2021
Gold prices fell during trading today in the European market, at the beginning of the week’s trading on Plus500 platform, to continue its losses for the second session in a row, on its way to abandoning trading above the psychological barrier of 1800 dollars an ounce, this decline came under pressure from the continued rise of the US dollar, which recorded its highest level in three months against the number of world currencies.
Gold prices and dollar movements
The spot price of gold decreased by more than 0.5% until 09:50 GMT, to trade around the level of 1801.75 US dollars per ounce, from the opening level of the trading session at 1811.49 dollars, and reached early in the session the highest price at 1817.36 dollars per ounce.
At the conclusion of trading on Friday, the precious metal “gold” lost 0.9% in the first daily loss during the last four sessions, as prices were affected by selling operations with the aim of taking profits, after recording the previous day the highest level in four weeks at 1834.14 dollars per ounce.
Over the course of the past week’s trading, gold prices managed to achieve weekly gains of 0.2%, to record their second consecutive weekly gain.
The USD index continues rising
As for the US dollar index trading, the index rose during today’s session by about 0.25% in the third daily gain in a row, thus recording its highest level in three months at 93.03 points, reflecting the continuation of the broad purchases of the US currency against most major and minor currencies, which Currently negatively affecting the price movements of gold and other metals priced in dollars.
With the approaching start of the announcement of the tightening of US monetary policy, concerns are growing about the different course of monetary policy in Europe and the United States, especially since the European Central Bank has repeatedly emphasized that it continues to support the economy and that it is not currently facing inflationary pressures like the one faced by the Federal Reserve. American Central.
Returning to trading in other precious metals, silver fell during spot transactions by about 1.1% to reach the level of 25.37 US dollars per ounce, and platinum also decreased by 0.8% at 1093.40 dollars, while palladium gained about 0.3%, recording the level of 2638.44 dollars per 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.