Gold prices are returning for the fourth day in a row

Mohammed Abdelkhalik
February 16, 2021
Gold prices

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Gold Price Outlook – 17th February 2021

Gold prices retreated during the trading session today, in the European market, to continue their daily losses for the fourth consecutive session, overlooking the decline of the dollar index for the second day in a row against most world currencies according to the inverse relationship between them, which negatively affected gold’s movements and pushed them to retreat at the present time. The rise in US ten-year bond yields, in addition to weak levels of forex investment demand for the safe-haven metal.

This comes on the cusp of economic developments and data anticipated by the US economy, which include speeches by members of the Federal Open Market Committee, and the developments of the fiscal stimulus package in the United States, estimated at $1.9 trillion.

XAUUSD Chart - 17th Feb 2021

At 08:50 GMT, gold futures contracts for “April delivery” decreased by 0.09% to trade around 1824.30 US dollars an ounce, compared to the opening level at 1826.00 dollars, and reached the highest price at 1828.40 dollars an ounce early in the session.

Gold prices also fell in US futures

On the level of last week’s trading, gold prices were able to achieve weekly gains of 0.6% in the first weekly gain during the last three weeks.

As for the trading of the US dollar index, the index declined during today’s session by 0.5% to the level of 90.24 points, from the opening level at 90.29 points.

This decline comes as a result of a slowdown in the demand for the US currency as the best alternative investment in the other foreign exchange market, especially in light of the growing optimism again about a rapid recovery of the global economy from the damage caused by the Coronavirus crisis, with the continued injection of more financial and cash spending, in addition to the acceleration of vaccination campaigns Against Covid-19.

US Treasury yields rose to a ten-year high to their highest levels since March 2020 on Monday, and global stocks continued to rise on Thursday, while optimism about the economic recovery from the Covid-19 crisis and expectations of a continued low-interest rate led to investors turning to high-yielding assets.

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.