bullish gold
Gold prices rose strongly during trading today, Friday, and continued their gains for the third consecutive day, especially following the US Federal Reserve’s decision to raise interest rates by only 75 basis points last Wednesday, which boosted demand for the yellow metal and significantly weakened the US dollar in trading.
During today’s trading, spot gold contracts rose by 0.59% and recorded regarding $1766.28 an ounce. Meanwhile, gold futures contracts recorded regarding $1,763.85 an ounce, an increase of 0.77%.
The dollar index, which measures the performance of the US currency, declined during today’s trading and settled below 106.00 points, and scored regarding 105.59 points, down by regarding 0.71%, and due to the inverse relationship between the two parties, gold prices were affected by the strength of the US dollar.
Gold prices rose strongly, coinciding with the strengthening of calm optimism regarding the tightening of US monetary policy at a very accelerating pace, in light of the US Federal Reserve’s decision to raise US interest rates by only 75 basis points last Wednesday due to its fears of an American economic recession.
In light of the high US inflation, and the strengthening of the chances that the US Federal Reserve will not accelerate the pace of raising interest rates during the remainder of this year, gold found strong support and began to regain its luster and rose towards the level of 1770 dollars an ounce.
In addition, the negative US economic growth data yesterday, Thursday, contributed to the rise of gold with full force because it reinforced fears of recession in the US economy, as the estimated reading of the gross domestic product in the United States showed a contraction of US economic growth by 0.9% during the second quarter of this year, including It differs with expectations that indicated a growth of 0.4%, and the previous reading of the index had witnessed a contraction of the index by 1.6% during the first quarter of the year.
Also, gold found support from the negative data of US unemployment benefits for a new week, as the number of US jobless claims reached regarding 256 thousand new applications, which is greater than expectations that it was indicated for recording 253 thousand applications, as well as higher than the previous reading of 251 thousand new applications. Highly modified to 261 thousand requests.
Among the prices of other metals, apart from gold, silver contracts rose at the beginning of trading by 1.21%, and recorded regarding 20.108 dollars an ounce, while palladium contracts decreased by 0.26%, and recorded regarding 2072.00 dollars an ounce. Platinum metal contracts rose by regarding 1.02% and recorded regarding 889.40 dollars an ounce.
