© Reuters. Gold is declining during today’s trading, so why?
Arabictrader.com – Prices recorded significant declines in trading today, Monday, driven by the rise in the US dollar, after gold prices rose to their highest levels in nearly nine months last week; Due to the decline in the US inflation rate, which resulted in a severe decline in the performance of the dollar index.
Turning to today’s trading, spot gold contracts fell by 0.33% and recorded about $1,913.97 an ounce, and recorded a decline of 0.34% to reach about $1,915.10 an ounce.
Gold prices witnessed a decline during today’s trading; Due to the rise in the dollar index, which measures the performance of the US dollar against a basket of six other major currencies, as it rose by 0.27% and scored approximately 102.225 points, and in light of the inverse relationship between the two parties, the rise of the dollar always has negative repercussions on gold prices.
Gold prices continued to fall directly; Amid rising returns for 10 years; In conjunction with the rise in the US dollar index, it recorded an increase of 0.37% and settled near the level of approximately 3.498 points.
Also, gold prices fell after the second largest consumer of gold in the world, China, announced the exacerbation of the epidemiological situation in the country, as an official of the Chinese National Health Authority announced that the country had recorded about 59,938 deaths resulting from the Corona virus, in just about a month ago. December 8, 2022 until January 12, 2023, that is, since China’s decisions to lift epidemic restrictions and open the economy, to raise investor concerns about the decline in demand for gold by its second largest consumer in the world, China, which prompted gold to record significant losses during today’s trading.
In addition, gold prices experienced strong declines, as investors await the release of US retail sales data, to be released next Wednesday. If the data came out larger than expected, it would positively affect the dollar index, resulting in a decline in gold prices.
Looking at the dealings of precious metals other than gold, we find that spot metal contracts declined by 0.26% and recorded about $24.20 an ounce, metal contracts fell by 1.89% and recorded about $1,758.98 an ounce, and metal contracts recorded a decrease of 1.13% and reached about $1,057.08 an ounce.
