Gold prices are retreating from the highest level in two weeks

Mohammed Abdelkhalik
March 22, 2021
Gold prices

Ad Disclosure

Gold Price Outlook – 23rd March 2021

Gold prices fell during Monday’s session in the European market at the beginning of the week’s trading. This retreat came as a result of remarkable sales activity aimed at reaping profits after it achieved its highest levels two weeks earlier in commodities trading.

In addition to the correction operations, which is also pressing on prices at the present time, the continued rise of the US dollar against most major and minor currencies, this comes at a time when investors await important statements by Jerome Powell, Chairman of the Federal Reserve Board (the US Central Bank) about the future policies of the bank. During this year.

Gold prices continue to decline

Gold fell during immediate transactions by about 1.1% until 09:10 GMT, trading the price of an ounce around the level of $ 1727.20, compared to the opening level at $ 1745.47, and early in the session, the highest price was recorded at $ 1747.06 per ounce.

US gold futures fell 0.2% to $ 1738.80 an ounce.

Gold prices chart - 23rd March 2021

The precious metal “gold” was able to finish trading on Friday, up by 0.5%, after losing almost the same percentage during the previous day within the sales operations to reap profits from the highest level in two weeks at $ 1755.50 an ounce.

Over the course of last week’s trading, gold prices recorded weekly gains of 1.1% in the second consecutive weekly gain, as prices received more support recently thanks to the improvement in actual demand for gold as a safe haven.

The rise of the US dollar index

The US dollar index rose during today’s trading session by 0.2% to maintain its daily gains for the third consecutive session, reflecting the continued buying of the US currency against most global currencies, which is currently negatively pressing the prices of gold and other metals priced in dollars.

This increase comes in light of investors ’focus on buying the dollar as the best alternative investment and their reluctance to buy high-risk currencies, especially due to fears of delayed economic recovery in Europe, compared to the acceleration of that pace in the United States.

Jerome Powell’s statements

At 13:00 GMT, Federal Reserve Chairman Jerome Powell will speak at an online event hosted by the Bank for International Settlements.

In previous statements to the Wall Street Journal, Powell said that the United States will emerge from the Coronavirus pandemic crisis stronger and better, as we did a lot before.

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.