© Reuters. Gold abandons the $2000 level in today’s trading, what is the reason?
Arabictrader.com – Gold prices were subjected to strong downward pressure during today’s trading, Wednesday; In conjunction with the rise in the US dollar, thanks to the hawkish statements of some policy makers at the US Federal Reserve regarding the continuation of raising interest rates, which affected the movements of the US dollar and gold prices.
Gold prices now
During trading today, Wednesday, spot contracts recorded a sharp decline of 1.56%, reaching the level of $1,974.25 an ounce, and at the same time; It fell by 1.72%, and recorded about $1,984.90 an ounce.
The most important reasons that pushed gold prices to fall
Gold prices witnessed strong pressures that prompted them to continue the downward momentum during today’s trading, due to the rise in the US dollar index, which measures the performance of the US currency against a basket of six other major foreign currencies, against the backdrop of an inverse relationship between the dollar and gold. Sometimes the movements of the US dollar affect the prices of the commodities denominated in it, especially the prices of the gold metal, down or up. In this case, the rise in the dollar index weakens the attractiveness of gold, since it raises the costs of purchasing it.
At the same time, the US dollar index increased by 0.32% and reached the level of 101.775 points, thanks to the hard-line statements of some US Federal Reserve members regarding the demand to continue tightening monetary policy, which caused gold prices to decline strongly, as US Federal Reserve member James Bullard sees That the US Federal Reserve should raise interest, given the lack of significant progress on inflation, and it still believes that we may witness a sufficient restrictive policy in a range between 5.50-5.75%, to support the movements of the US dollar index, which will negatively affect gold prices. during transactions.
Likewise, gold prices found downward pressures also on the sidelines of today’s trading, due to the rise in US bond yields, as the US bond yields for 10 years increased by 1.76% and reached 3.635 points, and at the same time, the US bond yields for 20 years rose by 1.12%. It scored about 3.9456 points, which reinforced the decline in gold prices and its continuation of the downward momentum.
other precious metals prices
As for the prices of precious metals, far from gold prices, contracts recorded during trading today, Wednesday, a decline of 1.82% and reached $24.73 an ounce, in addition to a decline in prices of 1.49%, to record about $1,066.88 an ounce. Likewise, prices recorded a decrease of 0.77% to reach $1,601.49 an ounce.
