Gold futures rose more than 1 percent during the US session as it rebounded from its lowest level since December 12 as USD index fell on the back of the day following economic developments and data followed Tuesday by the US economy, the world’s largest economy, On Wednesday, the US market will be absent on Wednesday due to the Independence Day holiday on July 4.
Gold futures for August delivery rose 1.06% to currently trade at $ 1,254.90 per ounce from the opening at $ 1,241.70 an ounce, while the US dollar index fell 0.27% to 94.62 compared to the opening at 94.87.
We saw US economy reading the factory demand index, which showed a rise of 0.4% compared to 0.4% decline in April, exceeding expectations, and this comes hours before the absence of the US market, amid investors’ anticipation to disclose the minutes of the meeting of the Federal Open Market Committee Which was held on 12-13 June after Thursday.
Members of the Federal Open Market Committee (FOMC) at their last meeting last mid-month raised interest rates 25 basis points for the second time this year to between 1.75% and 2.00%, which was expected by analysts, Tightening monetary policy and growing opportunities to raise interest rates on federal funds four times this year compared to their previous expectations three times as the previous year 2017.
In addition, the World Gold Council recently disclosed that global demand for gold fell 7% in the first quarter of 2018 to 973.5 metric tons, the lowest level since the first quarter of 2008, adding that the drop in demand for gold was led by Investment sector, explaining that the total investment in the yellow metal fell 27% to 287 metric tons against 393 metric tons in the first quarter of last year 2017.
World Gold Council also reported that investment in bullion and gold coins also declined in the first quarter by 15%, while central banks’ demand for gold rose 42% to 116.5 mt, particularly with Russia’s demand for yellow metal rising, At 487.7 mt during the first quarter, in conjunction with the growth of the supply of mines 1% on an annualized basis during the last quarter to about 770 metric tons.
Gold holdings at SbDeR Gold Trust, fell Monday by 9.73 metric tons, the fourth consecutive daily decline and the biggest daily drop since the beginning of last month to a total of 809.31 metric tons The lowest level since August 25.