Gold prices fell on the European market on Friday to continue losses for the second day in a row, the lowest level in a week, about to incur a fifth consecutive weekly loss, as the strong rise of USD against a basket of global currencies, this comes before the release of important data on key inflation levels in the United States.
Gold prices fell 0.25% to 09:15 GMT to trade at $ 1,209.45 per ounce from the opening level of $ 1,212.36 and recorded the highest level of $ 1,213.37 and the lowest of $ 1,205.73 the lowest in a week.
Gold prices ended yesterday’s trading down 0.2%, the first loss in three days, as the US dollar gained against a basket of currencies.
Gold prices have so far lost 0.3%, about to lose their fifth consecutive weekly loss, the longest losing streak in the week of November 2016, driven by the strength of the US dollar and lower levels of investment demand for the metal as a safe haven and alternative investment.
The dollar index rose 0.6% on Friday, extending its strong rally for the second day in a row, reaching its highest level in 13 months at 96.02 points, reversing large US dollar purchases against most major and minor currencies, putting pressure on gold and other dollar-denominated metals Which makes it very expensive for holders of other currencies.
The rise of the US currency comes in light of the strong appetite for buying the world’s strongest currency, supported by strong prospects for continued tightening of interest rates in the United States this year, and comes up at the expense of the weakness of currencies in Europe euro and pound sterling.
Most likely, the Federal Reserve has raised US interest rates two more times this year. To re-evaluate these prospects, investors will be looking for important data on key US inflation levels later in the day as consumer price data releases in July.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed index funds remained unchanged yesterday at 786.08 metric tons, the lowest level since February 29, 2016.