Gold prices rose on Thursday, extending their gains for a third consecutive day, trading above $ 1,200 an ounce, based on USD slide against a basket of currencies and buying safe haven assets amid a sharp downward spiral in global equity markets.
Gold prices rose by 0.7% as of 09:45 GMT to trade at $ 1,202.65 per ounce from the opening level of $ 1,194.71 and recorded the highest level of $ 1,203.44 and the lowest level of $ 1,191.27.
Gold prices rose 0.4% on Wednesday, the second daily gain in a row, supported by the decline of the US dollar and the decline in global equities.
The dollar index fell 0.4% on Thursday, extending losses for the third day in a row, reaching a 94.84-week low, reflecting the continued decline of the greenback against most major and minor currencies.
The fall of the greenback comes amid investors’ aversion to risk, after US President Donald Trump criticized US Federal Reserve policy and raised interest rates, as well as a fall in US Treasuries from a seven-year high.
The fall of the US currency also comes ahead of the release of important economic data from the United States on the main inflation levels in the country, represented by the release of CPI in September, the positive data that enhance the possibility of accelerating the pace of raising US interest rates, and thus will reduce losses of the US dollar and retreat Gold and other metals prices.
Global stock markets have suffered heavy losses in three months, with the Standard & Poor’s 500 Index falling more than 3%, the biggest daily loss since February.
The sharp drop in global equities is due to long-term US bond yields, which hit their highest level in several years, after the International Monetary Fund (IMF) lowered its outlook for global economic growth in 2018 and 2019.
Gold holdings in SPDR Gold Trust The world’s largest gold-backed index rose yesterday by 8.82 metric tons, the first daily increase since July 23, the largest daily increase since March 19, bringing the total to 738.99 metric tons, which is The highest since October 1.