Gold prices maintain gains ahead of Jerome Powell’s comments
August 27, 2021
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Gold prices rose during the trading session today in the European market, to maintain their…
Gold prices continue to decline due to the recovery of US dollar levels
Gold prices fell during the trading session today in the European market, in the second consecutive daily loss, to move away from their highest levels in three weeks, recorded earlier in trading. Major currencies, which received some support today thanks to renewed purchases of the currency as the best available investment, in light of the easing of fears of a slowdown in the recovery of the largest economy in the world.
This comes at a time when investors are awaiting later this week a speech by “Jerome Powell”, Chairman of the Federal Reserve, to obtain more evidence about the imminent tightening of monetary policy in the United States.
Gold prices continue to decline
At exactly 09:45 GMT, the spot price of gold was down by 0.7%, to trade the ounce price around the level of 1790.27 US dollars, from the opening level of today’s session at 1802.91 dollars, and the highest price reached at 1803.15 dollars per ounce.
Also, gold in US futures fell by about 0.2%, recording the level of $ 1805.70 an ounce.
At the conclusion of yesterday’s trading, the precious metal lost 0.1%, recording its first daily loss during the last three sessions, as prices were affected by selling operations with the aim of taking profits after it recorded its highest level in three weeks at 1809.60 dollars an ounce earlier.
The US dollar continues to rise
In terms of the US dollar index trading, the index rose during today’s session by more than 0.1%, to approach towards recording the first daily gain in the last four sessions, reflecting renewed purchases of the US currency against most major and minor currencies, which is currently negatively affecting the movements of gold and metal prices.
The index ended yesterday’s session down by 0.1%, in the third consecutive daily loss, thus recording its lowest level in a week at 92.80 points, due to the improvement in investors’ risk appetite.
On the other hand, Dr. Anthony Fauci, the chief infectious disease expert in the United States, said that his country may succeed in controlling the Coronavirus by the early next year 2022.
And the US Food and Drug Administration granted its full approval on Monday to the vaccine produced by Pfizer and Biontech, raising hopes that the vaccination campaigns may accelerate.
These statements and recent developments related to the viral pandemic have contributed to reducing fears that the recovery of the US economy will falter from the negative damage caused by Covid-19, and have also strengthened the chances that the Federal Reserve will soon tighten monetary policy in the United States.
In order to re-evaluate these possibilities, investors are waiting this week for a speech by “Jerome Powell”, President of the Bank, at the Jackson Hole conference on the economic outlook and the future of US monetary policy.
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.
