“Fears of World War and Negative US Data Boost Demand for Gold Today”

Arabictrader.com – It rose slightly during trading today, Tuesday, coinciding with the presence of some important developments that boosted the demand for the yellow metal, on top of which was the increase in fears about the outbreak of an imminent world war after the statements of a Russian official, and the negativity of many US economic data, which increased the demand for gold.

During today’s trading, spot gold contracts rose by approximately 0.35%, and recorded about $1,996 an ounce. At the same time, gold futures contracts rose by 0.31%, and recorded about $2,006 an ounce.

Gold rose due to some developments, which strengthened the demand for it as a safe haven, led by fears of the outbreak of a new world war after the statements of an official in Russia in this regard, as the Vice President of the Russian Security Council, Dmitry Medvedev, warned today, Tuesday, the world of the outbreak of a world war soon, He said in press statements that the possibility of a nuclear confrontation is also increasing, especially since the world is very turbulent and is very likely to be on the verge of a new world war. Medvedev said that such a new world war can be avoided, although the possibility of a nuclear confrontation is increasing more seriously than the fears associated with climate change.

At the same time, gold prices rose due to the negativity of some US economic data, on top of which was consumer confidence data, which came worse than market expectations, which may increase pressure on the Federal Reserve to stop raising interest rates, as the data released a short while ago showed that the US Consumer Confidence Index was recorded at 101.3. points, which is less than the market expectations, which indicated that it would record about 104.1 points, and the previous reading of the American Consumer Confidence Index had recorded about 104.2 points during last March, and it was revised down to 104.0 points only.

On the other hand, what prevents the rise in gold prices is the strength of the US dollar, as the US dollar, which measures the performance of the US currency against about 6 major currencies, rose by 0.57% and scored about 101.92 points, and in light of the inverse relationship between the two parties, gold is under pressure due to the strength of the dollar. Obviously, but the demand for the dollar is increasing as it is one of the safe havens currently competing with gold.

Among the prices of other metals away from gold, spot contracts decreased by 1.34% and recorded about $25.183 an ounce, while platinum contracts rose by 0.48% and recorded about $1103.15. Meanwhile, metal contracts fell by 3.25%, and recorded about $1484.53 an ounce.

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