Gold prices reach its highest level in two weeks supported by USD decline
Gold Prices ( XAU/USD) Gold prices rose in the European market on Tuesday to extend…
Gold prices rose in the European market on Monday, on its way to achieving its first gain in the last three days, supported by the decline in the USD against a basket of world currencies, and curbing the gains improved sentiment in the commodities markets and weak demand for the metal as a safe haven.
Gold prices rose by 0.8% to $ 1,954.68, from today’s opening price of $ 1,939.40, and reached the lowest price at $ 1,937.38.
The yellow metal “gold” lost 0.4% on Friday, in its second consecutive daily loss, with the correction operations continuing from a week high of $ 1,966.53 an ounce.
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On the level of last week’s transactions, gold prices achieved an increase of nearly 0.5%, in the second weekly gain in the last three weeks, thanks to the price holding on to trading above the barrier of $ 1,900 an ounce.
On Monday, the USD index decreased by more than 0.21%, extending its decline for the second day in a row, reflecting the continued the USD decline against a basket of major and minor currencies, which supports the prices of gold and other metals denominated in the US dollar.
This decline comes due to the slowdown in demand for the US currency as the best alternative investment, especially after the improvement in market sentiment, thanks to the hopes of soon reaching a vaccine to prevent the emerging Coronavirus.
Thanks to this sentiment, most global stock markets rose, especially in Asia and Europe, which reduced the investors’ appetite for buying gold as a safe haven.
Gold holdings in the SPDR Gold Trust, the largest global index fund backed by gold, fell on Friday by 4.96 metric tons, bringing the total to 1,248.00 metric tons, which is the lowest level since July 29.
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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