Gold prices rose in the European market on Monday, extending gains for the second day in a row, close to a two-week high, on the back of a weak Federal Reserve rate hike this year.
Gold prices rose by more than 0.5% as of 10:55 GMT to trade at $ 1,294.45 per ounce from the opening level of $ 1,287.38 and recorded the highest level of $ 1,295.60 and the lowest level of $ 1,287.38.
Gold prices ended Friday’s trading up 0.2%, the second gain in the last three days, after weak data on key inflation levels in the United States.
Over the past week, gold prices rose 0.25%, their fourth weekly gain in a row, among the longest weekly gain since late September, supported by weak US dollar and strong demand for safe haven assets.
The dollar index fell 0.1% on Monday, reflecting the decline of the US currency against a basket of major and minor currencies, which currently supports the rise in prices of gold and other metals denominated in US dollars.
The fall in US currency levels is under pressure as the Federal Reserve raises interest rates this year, especially after recent comments by chairman Jerome Powell that the central bank has the ability to be patient about monetary policy.
The prospects were also dampened by negative data on key US inflation levels in December, weak US economic growth in the fourth quarter of last year and rising price stagnation indicators that will follow US monetary policymakers at upcoming meetings of the central bank.
Gold holdings with the SPDR Gold Trust Fund The world’s largest gold-backed index fund remained unchanged on Friday at a total of 797.71 metric tons.