Gold Jumps to 3-Month High in Support of USD Decline

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Gold prices in the European market jumped on Monday to a three-month high, resuming strong gains after a temporary pause on Friday amid a correction and profit taking, supported by a drop in the dollar versus a basket of currencies, Financial markets.

Gold prices rose by 1.1% as of 10:40 GMT to trade at $ 1,231.15 per ounce from the opening level of $ 1,217.63 and recorded the highest level of $ 1,233.26 since July 26 and the lowest level of $ 1,216.85.

Yellow metal prices ended Friday’s trading down 0.5%, the first loss in four days, on correction and profit taking.


Over the past week, gold prices rose 1.25%, the second weekly gain in a row, supported by the fall of the US currency, and the purchase of safe haven assets accelerated after a large sell-off in the global equity markets.

The dollar index fell more than 0.3% on Monday, resuming its losses, which were temporarily suspended on Friday, approaching a two-week low, reversing the greenback against a basket of major and minor currencies, supporting higher prices for gold and other metals denominated in US dollars.

The fall of the greenback comes as risk averse investors focus on buying low-yielding currencies as the euro and the Japanese yen as safe havens, and investors are awaiting important economic data from the US on retail sales in September.

As risk increases in the financial markets, safe havens are gaining momentum, led by precious metals, gold and silver. These risks are currently fueled by fears of slowing global economic growth, the difficulty of completing a deal to separate Britain from the EU and global geopolitical tensions around Saudi Arabia. Jamal Khashfji in Istanbul, Turkey.

Gold holdings at SPDR Gold Trust rose Friday by 5.65 metric tons, bringing the total to 744.64 metric tons, the highest level since September 11.

 

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