Bitcoin rises near $40,000 in best corrective wave since mid-April
Bitcoin extended its gains during the last few days, following a series of positive news…
Gold prices rose by more than 1% during the trading session today in the European market, to approach towards recording its first daily gains during the last seven sessions. This rise came within the recovery process from its lowest level in two months, recorded earlier on Friday, as prices received More support recently thanks to the decline in US long-term Treasury yields, which enhanced the attractiveness of the non-yielding metal.
Gold achieved 1.2% gains during spot transactions, to trade around the level of 1785.77 US dollars per ounce, from the opening level of today’s session at 1764.32 dollars, and it reached early in the session the lowest price at 1764.30 dollars per ounce.
US gold futures also rose by about 0.4% to the level of $1,775.50 an ounce.
Over the course of the past week’s trading, prices lost 6%, thus recording their third consecutive weekly loss, and the largest weekly percentage loss during the current year specifically since March 2020, after the Federal Reserve raised its expectations regarding interest rates and inflation in the United States.
But despite this, the safe-haven gold has quickly absorbed the shock of the US Federal Reserve last Wednesday, and in these moments of today’s trading, gold recovered about $15 of its value, after strong losses it witnessed during the last days of last week.
It is noteworthy that the meeting of the Federal Open Market Committee, which was held on 15-16 of this month, during which US interest rates were kept at their lowest ever, between zero and 0.25% in addition to maintaining the bond purchase program of more than 120 billion dollars.
Last week, with the disclosure of the expectations of monetary policy officials at the Reserve Bank of the rates of growth, inflation, and unemployment, as well as the future of interest rates for the next three years.
The yield of the ten-year US Treasury bond fell on Monday by about 6.0% to its lowest level in four months at 1.354%, and as we know that the lower yield reduces the opportunity cost of holding the non-yielding precious metal.
Meanwhile, the dollar index settled near its multi-month peak reached in the previous session.
Returning to trading in other precious metals, silver rose during spot transactions by about 0.5% to reach the level of 25.92 US dollars per ounce, and palladium gained 1.3% at 1497.73 dollars.
While platinum fell 0.2% to the level of $ 1032.46 an ounce, and early in the session, it recorded its lowest level since the eleventh of last January at $ 1019 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.
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