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Oil Price Weekly Outlook – 2nd October 2020 Global oil prices extended their decline with…
Gold prices fell during today’s trading session Tuesday in the European market to witness their lowest levels since June 2020. As prices were affected today by weak investor appetite for the metal as a safe haven amid the rise of the US dollar to its highest level in four weeks against most other currencies benefiting from the rise in treasury bonds.
At 09:15 GMT, the spot price of gold was down by 0.6% to trade around $ 1712.00 per ounce, the lowest since the fifteenth of June 2020, compared to the opening level at $ 1722.80, and early in the session, it reached the highest price at $ 1723.00 per ounce.
Gold also fell in US futures by 0.4%, recording a level of $ 1716.14 an ounce.
At the end of yesterday’s trading, the precious metal “gold” lost 0.3% in the fifth consecutive daily loss, as prices were affected recently by the continued rise of the US dollar against most currencies.
Over the course of last February’s trading, gold prices lost 7.5% in the second monthly loss, and the largest monthly loss in percentage since November 2016, this decline came under pressure from the broad rise in US Treasury bond yields, which increases the opportunity cost of acquiring Gold that does not make a return.
The US dollar index rose during Monday’s session by more than 0.4% to maintain its strong gains for the third consecutive session, thus recording its highest level in four weeks at 97.39 points, reflecting the continued buying of the US currency against a number of major and minor currencies, which affects Currently, gold price movements are negatively priced, as they are priced in dollars and the existence of an inverse relationship between them.
The recent rise in the US currency levels was supported by the rise in the yields of the US Treasury bonds for ten years on Tuesday by 0.75%, in the second consecutive daily gain, bringing the yield close to the highest level in nearly a year.
The broad jump in US Treasury bond yields led to investor risk aversion, and the acceleration of open selling in global stock markets, as the chances of the Federal Reserve (US Central Bank) to tighten monetary policies to counter the rising inflation in the United States increased.
Returning to other precious metals trading, silver fell by 1.2% during spot transactions, to reach the level of 26.15 US dollars an ounce, and platinum lost 0.9% to 1174.50 dollars.
Palladium fell 0.1%, recording a level of $ 2346.67 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.