Gold price stabilized near a historic peak ahead of Federal Reserve decisions
July 29, 2020
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Gold Price Forecast & Technical Analysis: 29th July 2020 The gold price stabilized on the…
Gold prices are rising but still providing the worst performance in 6 years
Gold prices rose slightly during today’s session in Asia, amid weak trading in light of the holiday, as those gains were supported by the decline in long-term US Treasury bond yields, but the metal is still on its way to recording the worst annual loss in 6 years, due to the slowdown in demand levels for the metal. as a safe haven.
Gold prices continue to rise
At exactly 08:15 GMT, the spot price of gold rose by 0.26%, to trade around the level of 1819.50 US dollars per ounce, from the opening level of today’s session at 1816.22 dollars, and it reached the lowest price at 1814 dollars per ounce.
In US futures, gold rose 0.3%, to $1819.43 an ounce.
Over the course of this year’s trading, which officially ends when today’s settlement is reached, gold prices have lost 4% so far, after rising by 48% in the past two years, heading towards recording the first annual loss in the last three years and the worst annual performance since 2015.
On the other hand, the yields of the benchmark US 10-year Treasury bonds fell again after reaching their highest levels in a month during Thursday’s session, which raised the opportunity cost of non-yielding gold bullion, and with the current decline in bonds, gold rose in the absence of major catalysts with The presence of many traders in the New Year holiday.
According to an opinion poll conducted by “Reuters” last October, the price of gold is expected to record 1,750 US dollars per ounce on average during 2022, down from previous expectations due to pressures from a possible increase in interest rates by major global central banks.
The US dollar is falling
At the same time, the dollar index, which measures the strength of the US currency’s performance against a basket of 6 major currencies, moved away from its lowest level in a month recorded earlier in trading, as investors looked beyond this rise in cases of the “Omicron” mutated and that its risks are limited. With the efforts that most of the world’s governments are currently making to prevent the outbreak of the epidemic and their resistance to imposing closures, market participants preferred currencies with higher risks.
Returning to trading in other precious metals, silver rose during spot transactions by about 0.5% to the level of $23.15 per ounce, while platinum lost 0.2% to $959.27, and palladium also decreased by 1.5 percent, recording the level of $1935.80 per 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.
