© Archyde.com Gold rises marginally during trading, supported by the dollar’s decline
Arabictrader.com – Seen prices Marginal gains in terms of trading today, Thursday, are supported by the decline in the US dollar, but they move in a limited range, in light of the markets anticipation for the release of US employment data tomorrow, which may have a strong impact on the upcoming US Federal Reserve moves regarding the pace of rate hikes.
Gold prices now
Spot gold contracts recorded a slight increase, by 0.20%, and settled at the level of $1,817.48 an ounce. It also witnessed an increase by 0.10%, reaching $1,820.50 an ounce.
The most important factors that supported the movement of gold prices
The decline in the US dollar index, which measures the performance of the US currency against a basket of six other major foreign currencies, contributed to the rise in gold prices during today’s trading, in light of an inverse relationship between the two parties, as the weakness of the US dollar enhances the attractiveness of the commodities denominated in it, in particular Gold because it reduces the cost of its holders.
In this context, the US dollar index decreased by 0.18% and settled near the level of 105.448 points, after being affected by the testimony of US Federal Reserve Governor Jerome Powell yesterday, Wednesday, before the House of Representatives, where Powell stated that the next US Federal decision regarding raising interest rates will depend on upcoming jobs and inflation data. He added that he had not yet taken the interest decision, and this means that raising the interest rate by about 50 basis points at the next March meeting, which the markets priced on the first day of Powell’s testimony before the Senate, has become uncertain, which negatively affected the dollar’s movements, and this in turn contributed to the rise gold prices.
Also, the markets are closely awaiting the release of US employment data, which is scheduled to be issued tomorrow, Friday, which will strongly influence the upcoming US Federal Reserve decisions regarding the rate of interest rate hikes, especially after the statements of US Federal Reserve Governor Jerome Powell, yesterday, Wednesday, that they will monitor upcoming economic data, on top of which are market data. Work before making monetary policy decisions and determine the next interest rate hike, and this will have a clear impact on the movements of gold and the US dollar.
other precious metals prices
Spot contracts recorded a recovery of 0.39% and settled at $20.10 an ounce, and prices increased by 0.19% to reach the level of $941.96 an ounce, while prices fell by 0.81% and reached $1,365.92 an ounce.