Gold prices jump to the highest level in 3 months with the USD decline

Mohammed Abdelkhalik
May 17, 2021
Gold prices

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Gold Prices – 17th May 2021

Gold prices rose during Monday’s trading in the European market at the beginning of the week’s sessions, to maintain their daily gains for the third consecutive session, thus recording their highest levels in three months.

Especially in light of concerns about the increasing number of people infected with Covid-19 in some Asian countries, and prices have received more support recently thanks to the decline of the US dollar against a number of global currencies, which was affected by the decline in the yield of long-term US Treasury bonds.

Gold prices continue rising

XAUUSD daily chart - 17th May 2021

At 09:40 GMT, the spot price of gold was up by 0.6%, trading the price of an ounce around the level of 1855.39 US dollars, the highest since the second of February, from today’s session opening level at 1843.67 dollars, and early in the session reached the lowest level at 1840.57 dollars an ounce, and gold also rose in US futures by 0.8%, recording the level of 1853.20 dollars an ounce.

At the close of trading on Friday, the precious metal “gold” managed to achieve a gain of 0.9%, in the second consecutive daily gain.

In terms of last week’s trading, gold prices achieved gains of 0.7%, to record their second consecutive weekly gain, as prices received more support thanks to improved levels of investment demand for the metal being one of the best alternative safe havens in light of the continuing concerns related to the Coronavirus pandemic.

In India, the second world country most affected by the Covid-19 pandemic after the United States, whose number of people infected with the Coronavirus reached nearly 24.7 million on Sunday.

USD declines

Regarding the trading of the US dollar index, the index declined during today’s session by about 0.1% in the third consecutive daily loss, reflecting the continued selling of the US currency against most major and minor currencies, which currently contributes to supporting the movements of gold and other metals priced in dollars.

This weak performance recently witnessed by the US currency levels comes in light of the decline in the yield of US Treasury bonds, ten-year category, by 1.3%, extending their losses for the third consecutive session, amid diminishing possibilities that the Federal Reserve, “the US Central Bank,” will tighten monetary policy in the United States.

Returning to other precious metals trading, silver rose during spot transactions by 1% to the level of 27.70 US dollars an ounce, and platinum gained 0.5% to 1231.51 dollars, while palladium increased about 0.1%, recording the level of 2895.61 dollars an ounce.

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.