Gold prices rise from its lowest level in two weeks due to correction

Mohammed Abdelkhalik
September 8, 2021
Gold prices

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Gold prices rose during trading today Wednesday in the European market to approach towards recording its first daily gains during the last three sessions. Gains are still limited as a result of the US dollar’s rise to its highest level in a week against most global currencies, based on new developments in the bond market in the United States.

Gold prices are back to test the $1800 level

Gold prices

By 09:40 GMT, the spot price of gold was up by about 0.4%, to trade around the level of 1801.20 US dollars per ounce, from the opening level of today’s session at 1794.39 dollars, and it reached the lowest price at 1794.18 dollars per ounce.

Gold in US futures also rose 0.2% to $1,803.24 an ounce.

At the conclusion of yesterday’s trading, the precious metal “gold” lost 0.6% in the second consecutive daily loss, and the largest daily percentage loss since the ninth of last August, recording its lowest level in two weeks at 1792.43 dollars an ounce.

As for the US dollar index trading, the index rose during today’s session by more than 0.2% in the second consecutive daily gain, thus hitting its highest level in a week at 92.73 points, reflecting renewed purchases of the US currency against most major and minor currencies, which Currently, it negatively affects the price movements of gold and other metals priced in dollars according to the inverse relationship between them.

US bond market

During trading on Tuesday, the long-term US Treasury bond yield rose by about 3.5%, in the third consecutive daily rise, recording the highest level in about two months at a rate of 1.385%, after the strong growth in wages in the United States during the month of August, which renewed Concerns about increasing inflationary pressures on monetary policy officials at the Federal Reserve.

During today’s trading, Wednesday, the return decreased by about 2.0%, abandoning the highest level in two months, and approaching recording its first daily losses during the last four sessions, which is in favor of the recovery of gold prices and other non-revenue-generating assets.

These new developments in the US bond market come ahead of the release of several important economic data on the labor market in the United States, which are new jobs during the month of July, and ahead of the statements of some officials of the Federal Reserve, “the US Central”.

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.