“Why Did Gold Prices Fall Over 1.5% During Today’s Trading? Analysis and Insights”

Arabictrader.com – The yellow metal prices witnessed very strong downward pressure during today’s trading, Friday; Due to the rise of the US dollar and US bond yields, in conjunction with the issuance of strong US labor market data, which reinforced expectations about the US Federal Reserve continuing to raise interest rates during the coming period, which affected the movements of both the US dollar and metal prices.

During today’s trading, spot gold contracts fell by 1.97% and recorded about $2,009.91 an ounce, in addition to a strong decline in gold futures contracts by about 1.87% and reached the level of $2,017.30 an ounce.

The rise in the US dollar index, which measures the performance of the US currency against a basket of six other major foreign currencies, caused the price of gold to drop significantly in today’s trading, in light of an inverse relationship between the two parties. It is known in most cases that the rise of the US dollar weakens the The attractiveness of the commodities denominated in it, especially the yellow bullion, because it raises the costs of buying gold.

And at the same time; The dollar index increased by 0.22% and reached 101.63 points, affected by the positivity of labor market data, which supported expectations about the continuation of the US Federal Reserve’s rate hike, which negatively affected performance during today’s trading, and according to US statistical data, unemployment fell from 3.6% to 3.4. % last April, in addition to the positive data of the employment change index in the non-agricultural sector, as the index rose by about 253 thousand jobs, which is better than market expectations of about 181 thousand jobs only, and this would raise the possibility that the US Federal Reserve will continue the pace of tightening. monetary policy for the next meeting, which increases pressure on gold levels.

Also, gold prices were subjected to downward pressure on the sidelines of today’s trading, due to the rise in US bond yields, as the US bond yields for 10 years rose by 2.87% and reached the level of 3.448 points, in addition to the rise in yields of US bonds for 20 years by about 2.12% and recording about 3.8735. point, and this pushed gold prices to decline significantly in today’s trading.

In addition, the prices of the yellow metal also declined today, as a result of the World Gold Council’s announcement through the latest report on gold market trends for the first quarter of 2023, revealing a decline in global demand for gold by 13%, as the total demand for gold reached about 1,081 tons. , Which raised concerns about the continued decline in gold prices during the coming period, to reflect negatively on the trading of the yellow metal.

As for the prices of other precious metals, spot contracts recorded a sharp decline by 2.17%, to settle near the level of $25.48, while platinum prices rose by 0.09%, to reach $1,048.91. Also, prices recorded a very limited increase by 0.01%, reaching $1,457.00.

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