Gold prices on the European market jumped above $ 1,200 an ounce on Thursday, extending their gains for the second day in a row, the highest level this week, based on the decline of USD against a basket of currencies.

Gold prices rose by 0.5% as of 0917 GMT to trade at $ 1,204.50 an ounce from the opening level of $ 1,196.69, and recorded the highest level of $ 1,205.20 higher this week, and the lowest level of $ 1,195.82.

Gold prices rose 0.4% on Wednesday, recovering from a two-week low of $ 1.189.59 an ounce, supported by a weaker US dollar.

The dollar index fell 0.1% on Thursday, extending losses for the second day in a row, with the correction from a two-week high of 95.67 points, reversing the greenback against a basket of major and minor currencies.

This comes as investors assess the developments of the world trade commissioners, especially the ongoing US-Canadian commissioners, after US President Donald Trump pointed to progress in these commissions. Investors are also following the performance of emerging market currencies that started to recover relatively after a wave of heavy losses .

The decline in the US currency comes ahead of the release of important economic data from the US on US private sector jobs in August, as well as other data on the performance of the services sector during August.

Gold holdings with the SPDR Gold Trust Fund  funds remained unchanged yesterday at 746.92 metric tons, the lowest since February 19, 2016.