© Reuters Gold is falling marginally during today’s trading… for several reasons!
Arabictrader.com – metal prices recorded A slight decline during Monday’s trading; Where gold prices move in a limited range, in conjunction with increasing investor concerns about the levels of the US Federal Reserve raising expected interest rates to tame high inflation, as well as the markets’ anticipation for the issuance of the testimony of the US Federal Reserve Governor Jerome Powell before Congress, which will be issued tomorrow, which will provide some hints about his upcoming monetary policy, However, gold prices were able to achieve weekly gains of more than 2.00%.
In terms of trading today, spot gold contracts declined by 0.21% and recorded about $1,852.50 an ounce, while it witnessed an increase of 0.16% and reached $1,857.60 an ounce.
Gold prices were subjected to noticeable pressure during today’s trading, in conjunction with setting the second largest consumer of gold metal in the world, China, the goals for achieving growth for the year 2023, as Premier Li Keqiang announced the report of the Chinese government and the goals for 2023 regarding the country’s economy, explaining that China It aims to achieve the goal of GDP growth at the level of 5% for the year 2023, and this in turn reinforced the decline in gold prices, as it is a safe haven that investors resort to in light of economic uncertainty, crises and geopolitical tensions.
Also, gold prices declined during today’s trading due to the stability of the American currency, which measures the performance of the American currency against a basket of six other major foreign currencies, as the dollar index recorded an increase of about 0.03% and settled near the level of 104.515 points, which contributed to the decline in gold prices.
In addition, the markets are awaiting the issuance of the testimony of US Federal Reserve Governor Jerome Powell before the US Congress, which is scheduled to be issued on Tuesday and Wednesday, which will have a strong impact on the upcoming market movements, given that Powell will provide some hints and signals about the pace he will take regarding raising the next interest rates, and this That would put pressure on gold price levels.
In addition, gold prices declined in light of the positive data of the purchasing managers’ index in the US services sector, which was better than what the markets expected, as the index recorded about 55.1 points for the month of February, compared to expectations that indicated that it would record only about 54.5 points, which reflected positively on the performance of The US dollar index, and contributed to the decline in gold prices, in light of the inverse relationship between the dollar and gold.
Turning to the prices of precious metals other than gold, we note that spot contracts declined by 0.36% and reached $21.19 an ounce, and prices fell by 1.78% to settle near the level of $1,432.45 an ounce, in addition to recording prices that decreased by about 1.06% and reached $972.26 an ounce.
