© Reuters. Gold is falling today, so will it give up its weekly gains?
Arabictrader.com – Gold prices fell marginally during trading on Friday and continued to clear the $1,800 level as the week’s trading neared its end after the yellow metal rallied strongly for the week to the highest in four months, which put it on course for its biggest weekly profit in 3 weeks. .
Today’s trading was marginally lower than the previous session’s trading, as spot gold contracts declined slightly 0.09% to hit $1801 an ounce, and gold futures contracts gold fell by about 0.01% to reach $1815 an ounce.
Reasons for the Marginal Decline in Gold Prices
The US dollar was up slightly to 0.32% to hit 104.40 points, which limited gold’s gains to some extent during morning trading as the higher US dollar index leads to a drop in the cost of dollar-denominated gold for investors holding other currencies, which ultimately reduces the demand for gold.
The decline in gold profits can be attributed, albeit in small part, to two things, one of which is the statements of John Williams, which mainly touched on the fact that inflation has not yet reached its maximum level, referring to the possibility of an increase in the price level in the country; Which invites the US Federal Reserve to adopt a more stringent monetary policy. Which would lead to a rise in the dollar index, which would end in a decline.
The second issue is the willingness of US President Joe Biden to speak with his Russian counterpart, Vladimir Putin, during yesterday’s press statements, Thursday, in reference to the possibility of reaching talks on ending the Russo-Ukrainian war.
As the easing of political tensions contributes to lower gold prices, demand for the yellow metal is increasing dramatically in light of the political tensions, as it is a safe haven for investors in times of crisis.
However, the dollar’s upside is still limited given several factors, the most important of which are US Federal Reserve Governor Jerome Powell’s statements last Wednesday that the time has come to consider changing the pace of the dollar. ‘interest rate increase in conjunction with the inflation rate is approaching the required level.
This bolstered rising market expectations about the US Federal Reserve’s intention to raise interest rates at a slower pace by 50 basis points at its next meeting only, after the Federal Reserve tightened monetary policy by 75 basis points in the last four meetings.
In this regard, CME Group analysts said metallic gold surpassed the $1,800 an ounce level during today’s trading amid a significant increase in gold demand volume, indicating that the gold can get more profits in the near future. term.
As for the prices of other metals except gold; Contracts were up 0.42%, or about $23 an ounce, while they were down about 0.53%, and metallic platinum contracts were also down, registering about $1053 an ounce. ounce.
