Gold holds above 6-month low with support of stop USD rally

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Gold prices rose on Monday in early trading, consolidating above a six-month low earlier in the day, supported by a halt to the dollar’s rally against a basket of global currencies.

Gold prices rose by 0.3% as of 10:50 GMT to trade at $ 1,280.95 per ounce from the opening level of $ 1,277.45, and recorded the highest level of $ 1,282.48, and the lowest level of $ 1,277.45.

On Friday, gold prices lost 1.7%, the first loss in three days, the biggest loss since May 15, with profit taking from a four-week high of $ 1,309.39 per ounce recorded the day before. Global central banks tighten monetary policy.

Gold chart

Gold chart

 

 

 

 

Over the past week, gold prices have lost 1.5%, the second loss in the past three weeks, due to the strength of the US dollar and weak investment demand for the metal as a safe haven.

US Federal Reserve last week raised interest rates by 25 basis points to 2.0%, the second increase in interest rates in 2018, and pointed to the acceleration of monetary policy tightening this year, raising expectations of a four-point price hike targeting 2.5 Three times higher than previously expected.

ECB also decided to end the monetary stimulus era in December, in the first steps of tightening European monetary policy beginning in 2019. The bank noted that the decision to raise interest rates over the improvement of economic data in the euro zone has stopped.

USD index fell 0.1% on Monday, extending its second consecutive day of decline, with the correction from an 11-month high of 95.13 points, reversing the rise of the greenback against a basket of global currencies, which currently supports the rise in the price of metals denominated in dollars Given the inverse relationship between them.

Gold holdings at SPDR Gold Trust The world’s largest gold-backed index was unchanged on Friday for a fifth consecutive day at 828.76 metric tons, the lowest since February 16.

 

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