Gold prices on the European market rose on Thursday to continue gains for the second day in a row, on the verge of reaching the $ 1,300 per ounce barrier, supported by the decline of the dollar against a basket of currencies, and affected by the minutes of the recent meeting of the Federal Reserve.
Gold prices rose by 0.2% as of 08:25 GMT to trade at $ 1,295.70 an ounce from the opening level of $ 1,293.79 and recorded a high of $ 1,297.05 and a low of $ 1,291.62.
Gold prices rose 0.6% on Wednesday, the second gain in the last three days, supported by USD falling.
The dollar index fell 0.1% on Thursday, continuing its losses for the second day in a row, reaching a three-month low of 94.62 points, reflecting the continued decline of the US currency against a basket of currencies, which favors the rise in prices of gold and other metals priced in US dollars .
The fall of USD under pressure is twice as likely to raise US interest rates this year, especially after the minutes of the Federal Reserve’s last meeting, published earlier on Wednesday.
The record showed that many US monetary policymakers support a stable interest rate this year and any rate hike will depend only on economic data.
To reassess these possibilities, investors are expected to hear later today the speech of US Federal Reserve Chairman Jerome Powell at the Washington Economic Club. The speech comes at 17:45 GMT and is expected to include new evidence on the future of tightening US monetary policy.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed index rose yesterday by 2.65 metric tons, the first increase in three days, bringing the total to 799.18 metric tons, the highest level since July 25, 2018.