GBPUSD continued to decline in the morning trading on Friday, and recorded the second consecutive…
Gold prices are rising with the emergence of the new Coronavirus mutator
Gold prices rose during the trading session today in the European market, to approach towards recording its second daily gain in a row, to trade again above the important psychological barrier of 1800 dollars an ounce. After news of the spread of fears globally about a new, very dangerous mutator of the coronavirus.
Gold prices are back up
By 09:25 GMT, the spot price of gold was up by about 1.1%, to trade around the level of $1809.02 an ounce, from today’s opening level of $1789.08, and the lowest price was at $1789.06 an ounce.
In US futures, gold also rose 0.2% to $1,807.12 an ounce.
At the conclusion of yesterday’s trading, the precious metal “gold” managed to achieve 0.1% gains, thus recording its first daily gains during the last six sessions. This rise came within the recovery processes from its lowest level in three weeks at 1778.45 dollars an ounce recorded earlier this week.
The USD index declines
Today, gold prices crossed the barrier of 1800 dollars an ounce due to the decline in the US dollar index, which measures the performance of the US currency against 6 major currencies, and as we know that the decrease in the index contributes to supporting the movements of the metal according to the inverse relationship between them.
Other than that, and what provided more support for prices recently, fears increased again about the global economic slowdown, especially after news of the discovery of a new mutation of the highly dangerous Coronavirus.
The UK sounded the alarm about the spread of a new strain of the Coronavirus that was discovered in the country “Botswana,” and scientists confirmed that it contains an incredibly high number of mutations.
Britain announced the cancellation of its flights with South Africa due to the Coronavirus. Officials say they need several weeks to study this mutation and see what is happening and what effect it has against vaccines.
These developments about the Coronavirus come at a time when the European continent is struggling to prevent the spread of the fourth wave of the pandemic, with some countries, especially Austria, resorting to imposing a state of complete closure again.
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.