Gold prices rose slightly on the European market on Friday for the first time in seven days as they struggled to recover from a 19-month low, but were in their sixth consecutive weekly loss, the longest losing streak since November 2016.
Gold prices rose by 0.3% as of 0912 GMT to trade at $ 1,177.45 per ounce from the opening level of $ 1,173.75 and recorded the highest level of $ 1,179.81 and the lowest level of $ 1,171.88.
Gold ended yesterday’s trading down 0.1%, the sixth daily loss in a row, reaching a 19-month low of $ 1,160.17 an ounce, as the dollar strengthened.
Over the course of the week, gold prices have lost 2.8% to current trading, about to incur their sixth consecutive weekly loss, the longest weekly loss since November 2016.
The week’s loss is the largest so far in 2018, the biggest since the first week in November 2016, driven by the strength of the US dollar, and the demand for the metal almost disappeared as a safe haven or alternative investment.
USD hit a 14-month high against a basket of world currencies this week, especially after emerging market currencies, especially the Turkish lira, collapsed, as well as concerns over the US-China trade dispute.
The US currency also supported strong prospects for the Federal Reserve to raise interest rates twice more this year, especially after recent inflation and retail data in the United States, which rose strongly in July.
Gold holdings with SPDR Gold Trust fund fell yesterday by 3.24 metric tons to a total of 773.41 metric tons, the lowest level since February 26, 2016.