Gold prices rose during today's trading overlooking the decline of the dollar index according to…
Gold prices are rising again to near the highest level in 8 weeks
Gold Prices Outlook – 21th April 2021
Gold prices rose during the trading session today in the European market, in the second consecutive daily gain, to approach their highest levels in nearly eight weeks, which they reached earlier this week.
Gold prices and a decline in the dollar
The spot price of gold rose by about 0.5% until 09:12 GMT, trading the price of an ounce around the level of 1788.44 US dollars, from the level of the opening of today’s trading session at 1778.80 dollars, and early recorded the lowest price at 1776.11 dollars an ounce.
And US gold futures rose by 0.5%, recording the level of 1786.90 dollars an ounce.
It is noteworthy that the precious yellow metal “gold” had concluded yesterday’s trading, increasing by 0.3%, to resume its gains that stopped the previous day as part of the selling operations in order to reap profits after it hit its highest level in nearly two months at 1790.01 dollars an ounce.
Gold buying has been renewed as one of the best safe alternative investments in light of concerns in global stock markets after its decline on Tuesday, led by US stocks on Wall Street, due to selling after a strong wave of gains and setting new records.
In light of concerns about the continued decline in stock markets, coinciding with the increase in concerns about the developments of the Coronavirus in India and the increase in cases of the virus, the demand for the precious metal as a safe haven is currently active.
The high yield of the US Treasury
As for the trading of the US dollar index, the index rose by 0.2% during the session on Wednesday, in the second consecutive daily gain, reflecting the continued recovery of the US currency levels against most world currencies, which currently puts pressure on the movements of gold and other metals priced in dollars.
This recovery in the US currency today comes thanks to the renewed purchases of the dollar as the best alternative investment, in light of the investors’ reluctance to take risks, due to the recovery of Treasury bond yields in the United States.
During today’s session, the yield of US 10-year Treasury bonds increased by 1.3%, to approach the rise again, which undermines risk appetite in financial markets, and increases the opportunity cost of owning the precious metal that does not yield any return.
Otherwise, market participants are awaiting the European Central Bank meeting later on Thursday to obtain any new indications about the bank’s future stimulus plans.
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.