© Reuters. Gold is rising today, what about its weekly performance?
Arabictrader.com – Gold prices rose clearly during the last trading sessions of the week, heading for strong weekly gains, supported by the decline in the dollar and the returns of gold.
Turning to today’s trading, it is clear that gold prices rose by 0.20%, to record approximately $1944.00 an ounce, and at the same time, December delivery prices rose by about 0.23%, to settle at approximately $1,970.35 an ounce.
On the weekly level, gold prices rose today and are on their way to achieving remarkable profits for the second week in a row. It gained about 1.40% since the first trading this week until now.
In this regard, it is worth noting that the profits of the precious metal were supported by the decline in expectations of the US Federal Reserve raising prices at its meeting this month. As a result of the slowdown in the US labor market during the month of August.
The estimated data for gross domestic product growth in the United States also came below expectations, but also lower than the levels recorded during the first quarter of 2023; The bullish momentum of gold trading was strengthened as a result of the growing market expectations regarding the slowdown in economic activity in the largest economic power in the world. This provided strong support for gold’s movements this week, as it is a safe haven in times of economic crises and fluctuations.
Below, we can address the most important factors that contributed to the rise in gold prices in today’s trading:
1. The decline of the US dollar
The decline of the US dollar during today’s trading contributed to the bullish momentum of gold’s movements; As it recorded – which measures the performance of the green currency against a basket of six other major currencies – a decrease of about 0.07% to settle near 103,558 points. Often, the decline in the dollar leads to a rise in the prices of gold contracts denominated in the US currency, as the precious metal seemed less expensive for investors. .
2. The escalation of political tensions
Gold benefited from its role as a safe haven during times of political and geopolitical turmoil, clearly during today’s trading; Yesterday, the US Treasury Department’s Office of Foreign Assets Control revealed its intention to impose new sanctions on North Korea, a day after the latter launched two short-range ballistic missiles under the pretext of conducting training for a tactical nuclear strike. This fueled market concerns about the growing tensions between North Korea and the United States, which eventually supported gold prices.
Gold traders are awaiting the release of US labor market data for the month of August later in the day, as well as index data for the manufacturing sector, and their strong repercussions on the upcoming US dollar movements – which affects consequently on gold prices due to the inverse relationship between the two parties – which will determine the possible US Federal Reserve moves. Concerning interest rate meeting September 20.
2023-09-01 10:46:00
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