© Archyde.com Gold rises in today’s trading We coincided with the decline of the US dollar
Arabictrader.com – Seen prices A limited increase during trading today, Tuesday, supported by the decline of the US dollar.
Gold prices now
During today’s trading, spot gold contracts achieved a marginal increase of 0.29%, and recorded regarding $ 1,962.32 an ounce, and at the same time; It recorded an increase of 0.31%, to settle near the level of $1,977.60 an ounce.
The decline of the US dollar index
Gold prices received remarkable support during today’s trading, due to the decline in the US dollar index – which measures the performance of the US currency once morest a basket of six other major foreign currencies, due to the presence of an inverse relationship between the two parties. The decline in the dollar index raises the attractiveness of the commodities denominated in it, especially gold. Because it reduces the cost of its acquisition.
In this context, the US dollar index decreased by 0.41% and reached approximately 102.110 points, coinciding with the statements of some members of the US Federal Reserve regarding the financial sector crisis, led by Philip Jefferson, who explained that if the size of small and regional banks shrinks, this may cause a change in lending standards, In addition to the possibility of its impact on small businesses disproportionately, which warned the US Federal Reserve to avoid harming the economy more than is necessary, which was reflected in the negative trading of the dollar, which supported the levels of gold prices.
International Monetary Warnings on Financial Stability Risks
Gold prices also found demand due to the statements of the head of the International Monetary Fund, Kristalina Georgieva, regarding the global financial situation, as she warned of increasing financial stability risks, which made her note that the expectations in the medium term for the global economy are likely to remain weak, due to the exceptionally high uncertainty. For the banking sector, she added that the recent turmoil in the banking sector reinforced the risks to global financial stability, and this in turn pushed gold prices to rise as a safe haven for investors to resort to in cases of financial and economic uncertainty.
Banks’ expectations supportive of gold price movements
In addition, gold prices found support amid the expectation of economists at TDS Bank that gold will have a strong upward momentum during the coming period, due to the improvement in the risk appetite of investors towards gold with the bank crisis that began with the collapse of Silicon Valley Bank, explaining that gold will find great support as it A safe haven amid the ongoing banking crisis, in addition to expectations of a temporary halt to the US Federal Reserve’s rate hike, which will reflect positively on gold’s movements.
other precious metals prices
Spot contracts recorded an improvement of 0.50% and reached $23.20 an ounce, while prices experienced limited declines by 0.12% and recorded $1,421.16 an ounce. Likewise, prices recorded a decline of 0.46%, to record regarding $973.56 an ounce.