Gold prices rose for a second day based on the decline in the US dollar
October 9, 2020
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Gold Price Weekly Outlook: 9th October 2020 According to several Top UK forex platforms, the…
Gold prices are falling from the highest level in two weeks
Gold prices fell during today’s trading session in the European market, approaching to record its first daily losses during the last three sessions, abandoning its highest level in two weeks, recorded earlier in the Asian market transactions.
To the slowdown in the levels of demand for the metal as a safe haven in light of the improvement in risk appetite in global financial markets.
Gold prices trade above $1750
At exactly 09:45 GMT, the spot price of gold was down by about 0.75%, to trade around the level of 1748.78 US dollars an ounce, from the opening level of today’s session at 1762.10 dollars, and it reached the highest price at 1765.65 dollars an ounce, the highest since the twenty-third of last September.
In futures contracts in the United States, the precious metal settled unchanged to remain at the level of 1755.76 dollars an ounce.
The precious metal managed to end trading on Friday, rising by 0.2%, in the second consecutive daily gain, as prices received more support recently due to the continuation of recovery processes from the lowest level in seven weeks, in addition to the halt in the rise in the long-term US Treasury bond yields.
Over the course of the last week’s trading, gold prices managed to achieve a gain of 0.5% in a new weekly gain, the first in the last four weeks, thanks to the clear improvement in the levels of actual demand for gold in China, “the largest consumer of metals in the world.”
Other than that, and what affected the metal’s movements negatively at the present time, the risk appetite of investors in most global financial markets improved, and the demand for the metal slowed, as it is one of the best alternative safe havens, especially after the positive news of a new “grain” treatment for the coronavirus.
The USD continues to decline
The dollar index fell during today’s session by about 0.3%, to record its third consecutive daily loss, moving away from its highest level in about a year recorded earlier in trading, reflecting the continued selling of the US currency against most major and secondary currencies, which currently contributes to supporting the movements of the US dollar.
The US currency was able to achieve gains of 0.9% over the course of trading last week, in the fourth consecutive weekly gain, thanks to currency purchases as the best investment available, after increasing the possibilities that the Federal Reserve will raise US interest rates during the next few periods.
But the current decline in dollar levels, comes due to the slowdown in investor demand for the dollar as the best available investment, in light of the improvement in risk appetite, after positive news about a new drug for the Coronavirus.
Where the results of the interim clinical trials showed that an experimental drug to treat the Coronavirus reduces the risk of hospitalization or death by almost half, and he gave a “pill” of the drug “Molnopiravir” twice daily to patients who were recently diagnosed with the infection.
For its part, the giant pharmaceutical industry in the United States, Merck, said that the results of the pills are so positive that some external observers have asked to stop the experiment early, and the company explained that it will apply for a license for emergency use of the drug from the competent American authorities within the next two weeks.
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.
