GBPUSD rose during trading today, Friday, in light of the uncertainty about global economy due…
Gold prices rises again due to the USD decline before US inflation data
Gold Prices Outlook – 9th June 2021
Gold prices rose during trading today in the European market, approaching to record its third daily gain in the last four sessions. This rise came based on the decline of the US dollar, which was affected by the decline in the long-term US Treasury bond yield, and this comes a day before the release of the main inflation data in the US. The United States, which is supposed to provide any new clues about the future policies of the Federal Reserve.
Gold prices rose after the USD decline
At 09:35 GMT, the spot price of gold was up by more than 0.2%, to trade the ounce price around the level of 1896.36 US dollars, from the opening level of today’s session at 1892.11 dollars, and recorded the lowest price of 1877.28 dollars per ounce.
Gold rose in US futures contracts by 0.1%, recording the level of $ 1896.60 an ounce.
At the conclusion of yesterday’s trading, the precious metal “gold” lost 0.3% in the first daily loss during the last three sessions, as prices were recently affected by the rise in the levels of the US dollar against most currencies.
The USD index continues to decline
In terms of the US dollar index trading, the index declined during today’s session by about 0.2% to resume its losses that were temporarily halted during the previous session, in the process of recording the third daily loss in the last four sessions, reflecting the renewed selling of the US currency against most major and secondary currencies, which currently contributes To support the movements of gold and other metals priced in dollars.
The US 10-year Treasury bond yield fell today, Wednesday, by 2.0%, in the second consecutive daily loss, recording a five-week low of 1.503%, which enhances the risk appetite of investors in global financial markets.
These developments in the US bond market come a day before the release of key inflation data in the United States, which is supposed to provide more indications about the extent to which the Federal Reserve (the US central bank) will continue to refrain from reducing monetary support. Inflationary pressures on the board’s officials, and it provides appropriate pricing for the possibilities of reducing the bond purchase program and raising the interest rate.
It is scheduled later next week that the US Federal Reserve will hold its regular meeting to discuss appropriate monetary policies for the development of the US economy, “the largest economy in the world”.
Returning to trading in other precious metals, silver settled during spot transactions unchanged to remain at the level of $27.64 an ounce, and platinum fell 0.1% to the level of $1160.08, while palladium fell 0.1% to $2803.13 an ounce.
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.