Gold prices rose supported by the falling US dollar

Mohammed Abdelkhalik
October 20, 2020

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Gold prices increased in the European market on Tuesday to extend its gains for the second day in a row, to hold trading above $ 1,900 an ounce, supporting the USD declined against most of the world currencies.

Gold prices increased by 0.2% to $ 1,908.18, from today’s start trading price $ 1,904.15, and hit the lowest price at $ 1,894.55.

gold prices

Yesterday, Gold rose by 0.2%, its third gain in the last four days, with the rise of most metals and commodities denominated in the US dollar.

Gold prices rose after the USD decline

The dollar index fell on Tuesday by 0.3%, extending its losses for the third consecutive day, reflecting the continued decline in levels of the greenback against a basket of major and minor currencies.

This decline comes in light of the positive sentiment that dominates investors, and the slowdown in demand for the US currency as the best alternative investment, especially after positive developments regarding political talks in the United States about the new fiscal stimulus program.

The US House of Representatives spokesman said on Monday that  Nancy Pelosi and Steve Mnuchin ”Treasury Secretary” continued to narrow differences over the fiscal stimulus program through a phone conversation.

Nancy Pelosi said that by Tuesday ending there will be clarity on whether the Coronavirus Relief Bill can be passed before the November 3 presidential elections.

Gold holdings of the SPDR Gold Trust, the largest global index fund backed by gold, increased yesterday by 0.29 metric tons, bringing the total to 1,272.85 metric tons.

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.