Gold deepens its losses to its lowest level in 4 months
Gold prices retreated on Tuesday to deepen their losses for the second consecutive day, hitting…
Gold prices rose during trading today at the beginning of the week’s trading, to consolidate above its lowest level in two weeks, recorded earlier in the last session, and this rise in prices witnessed today comes supported by the decline of the US dollar against a number of global currencies, and also supported those rises.
TradeNation Investors also increased their appetite for buying gold as the best safe investment, especially in light of concerns about the high incidence of the mutated strain “Delta”.
At exactly 09:35 GMT, the spot price of gold was up by about 0.5%, to trade around the levels of 1811.53 US dollars per ounce, from the opening level of today’s session at 1802.21 dollars, and recorded the lowest price at 1798.42 dollars per ounce.
Gold in US futures also rose 0.3% to $1,806.70 an ounce.
It is noteworthy that the precious metal “gold” had ended Friday’s trading, down by 0.3%, in the third daily loss during the last four sessions, thus recording its lowest level in two weeks at $ 1789.68 an ounce, as prices were affected by the season of the rise of the US dollar, in addition to the slowdown in demand levels on metal as a safe haven.
For the same reasons, gold prices lost more than 0.5% over the past week, recording its first weekly loss in the last five weeks.
In terms of the US dollar index trading, the index decreased during today’s session by about 0.25%, to approach the recording of the first daily loss during the last three sessions, reflecting the suspension of purchases of the US currency against most major and minor currencies, which currently contributes to supporting the prices of gold and other metals priced in dollars, given There is an inverse relationship between them.
This decline in the levels of the US currency comes due to a slowdown in the demand for the dollar as the best investment available in the other foreign exchange market, in light of increasing speculation that the rise in cases of the Coronavirus again in the United States will delay the Federal Reserve’s announcement to reduce the bond purchase program.
Financial markets are closely awaiting the launch of the activities of the Federal Reserve (US Central Bank) meeting, to discuss appropriate monetary policies for the developments of the largest economy in the world, to issue its decisions on Wednesday.
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.
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