Gold price rises from its lowest level in seven months
Gold price achieved a rise at the beginning of the week’s trading in the European session, retreating from its lowest level in seven months that it recorded earlier trading, the current rise comes supported by the weakness of the US dollar against many major currencies, despite the rise in US Treasury bond yields to the highest Her level in one year.
During today’s trading, 金価格 rose by 1.0% today to trade at $ 1799 an ounce, retracing from its lowest level in seven months at $ 1760 per ounce, which it recorded last Friday.
Last week, the yellow metal recorded its second consecutive weekly decline, with losses estimated at 2.2%.
Gold price under the stimulus package
Gold price finds resistance as the prevailing demand for cryptocurrencies increases, as the crypto frenzy is likely to continue with the $ 1,400 direct checks that include the US relief package. Besides, the stimulus is likely to lead to inflation, prompting the Federal Reserve to raise Interest rates, and the subsequent strengthening of the dollar is a source of concern for investors looking to trade gold.
President Biden’s $ 1.9 trillion relief package has been prepared to facilitate the recovery of the US economy, as lawmakers in the country strive to finalize legislation by mid-March. The package includes direct checks of $ 1,400 per person. Upon receipt of this payment, the number of A large beneficiary will be buying cryptocurrencies, this will push up the prices of various digital currencies while leading to a drop in gold prices.
At the same time, direct payments may lead to an abundance of dollars. If this happens, the value of the dollar will depreciate, forcing the Federal Reserve to increase interest rates. With a stronger dollar, investors are likely to convert their resources into dollars. This will lead to an unfavorable environment for rates.
On Friday, the Reserve Bank warned of the risks that may befall the economy in the event of the failure of ongoing business in the United States.
プロのトレーダー兼アナリスト、2004 年から金融および外国為替市場のエコノミスト。エジプトのアメリカン大学で MBA を取得。モハメッドは、多くの国際外国為替および金融取引会社で経済ライターおよびテクニカルおよびファンダメンタルズアナリストとして、英語とアラビア語の両方で日々働いています。