Gold prices fell on the European market on Wednesday, resuming losses, which were temporarily suspended yesterday amidst a breath-taking, again approaching a two-week low under pressure from the US dollar, despite Donald Trump’s comments on interest rates.
Gold prices fell by 0.2% as of 10:22 GMT to trade at $ 1,187.55 per ounce from the opening level of $ 1,189.41 and recorded the highest level of $ 1,191.35 and the lowest level of $ 1,186.35.
Yellow metal ended yesterday’s trading up by 0.1%, recovering from a two-week low of $ 1,183.22 an ounce, supported by the decline of the US dollar against a basket of currencies.
The dollar index rose more than 0.1% on Wednesday, resuming its rally after yesterday’s 7-week high of 95.82 points, reversing the recovery of the US currency again against a basket of major and minor currencies, which does not favor the rise in gold prices.
The US currency’s rise comes despite US President Donald Trump’s criticism of Federal Reserve policy, saying he does not like what the central bank is doing and that the inflation target is already in place, so he does not think it is necessary to quickly raise interest rates.
Gold holdings in the SPDR Gold Trust Fund remained unchanged for the second day in a row, remaining at 730.17 metric tons, the lowest since February 12, 2016.