Gold prices fell to a one-week low on Friday, resuming losses that were halted yesterday, almost weekly losses due to the dollar’s rally against a basket of currencies and weaker demand for safe havens.
Gold prices fell around 0.5% at 0910 GMT to trade at $ 1,240.85 per ounce from the opening level of $ 1,247.11 and recorded the highest level of $ 1,248.13 and the lowest level of $ 1,240.41 since July 3.
Gold prices ended yesterday’s trading up by 0.4%, the first gain in three days, in the breath taking.
Gold prices have so far lost 1.1%, close to a weekly loss of four in the past five weeks as the US dollar gains against a basket of currencies, as well as weak investment demand for safe haven assets.
USD rose on Friday against a basket of global currencies to widen its gains for a fifth consecutive day, hitting its highest level in two weeks, marking the biggest weekly gain since May, based on strong prospects for the Federal Reserve to raise interest rates two more times during This year.
The dollar index rose more than 0.2% at 1235 GMT, trading at 94.80 points, the opening level of 94.60 points, the highest at 94.98 points since June 29 and the lowest at 94.55.
USD index ended yesterday’s trading up 0.1%, the fourth straight gain in a row, as the broader US currency against the Japanese yen and other low-yielding currencies continued.
Over the course of the week, the index rose 1.2% on the day, recording the biggest weekly gain since May, based on strong prospects for the Federal Reserve to raise interest rates two more times this year.
These prospects were strengthened this week after positive data on US producer and consumer prices in May to reflect the continued recovery of inflation in the US this year, which is highly dependent on US monetary policy makers to carry out the entire cycle of raising interest rates four times During 2018, the Fed raised interest rates twice this year to a 2.0% range.
US economy is expected to release an important release on consumer confidence later today. The preliminary reading of the University of Michigan Consumer Sentiment Index in July is expected to be 98.1 points from 98.2 in June.
Gold holdings with the SPDR Gold Trust Fund The world’s largest gold-backed index fell yesterday by 3.83 metric tons, bringing the total to 795.19 metric tons, the lowest level since 14 August 2017.