© Reuters
Written by Ambar Warrick
Investing.com – Gold reversed its trend positively to the upside, and gold contracts approached the $2000 level again, and gold contracts are now trading at $1992.75 an ounce, up by 0.32%, while spot contracts record $1975.53, up by 0.33%. On the other hand, the dollar index turned to a loss after rising hours ago, and now records 102.055 against a basket of foreign currencies, down by 0.13%, after rising by more than 0.20% hours ago.
Gold starts trading
Gold prices fell on Monday as markets took some profits after a strong performance in the first quarter, with focus now turning to a series of US economic readings this week for more clues about the future.
Bullion prices rose more than 7% in the first three months of the year, although the bulk of the gains came in March amid growing fears of a US banking crisis. While government intervention calmed market fears about an imminent crash, the yellow metal remained relatively supported by safe-haven demand.
This spurred some profit-taking on Monday, although it is still less than $100 off its 2020 high.
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OPEC + countries, led by the Kingdom of Saudi Arabia, announced a reduction in daily oil production, starting in May, by 1.65 million barrels per day, to rise again by more than 5% at the beginning of today’s trading, and this measure stimulates the return of fuel to rise in the United States, which helps raise inflation again, forcing the Fed The US will need to cut further in the future if it wants to control inflation levels.
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Gold prices now
Gold declines at the beginning of today’s trading, losing $5 in the first hours of trading, to record $1981.05, a decrease of 0.25%, while spot contracts recorded a decrease of 0.29%, trading at $1963.8 an ounce.
On the other hand, the US dollar index rose 0.24% to 102.433 against a basket of foreign currencies, at a time when US returns rebounded, and the 10-year Treasury yield recorded 3.543%, an increase of 1.52%.
Important data that determines the trend
Meanwhile, the focus is now on a slew of US economic reads this week, starting with Manufacturing activity data for March, due later Monday. The reading is expected to show that the US manufacturing sector remained in contraction territory for the fifth month in a row.
But the main point of focus will be data ecl-227 for the month of March, due Thursday. Traders will also be watching for any further signs of weakness in the labor market, which could open the way for a less hawkish Fed this year.
Such a scenario bodes well for gold, which has largely overtaken as a preferred safe haven over the past month. This was partly driven by expectations that the Fed will soften its hawkish stance to avoid further stress on the banking system.
other precious coins
It decreased by 0.5%, while 8836 down by about 1%.
Among industrial metals, copper prices fell amid more signs of weak manufacturing activity in China, the largest importer.
Also, it fell by 0.4% to $4.0663 a pound.
A private poll on Monday showed that ecl-753 in China slowed sharply in March, as it ran out of steam from the post-Covid economic boom. This indicates an uneven economic recovery in the country, which may dampen its appetite for commodities.
