Gold prices fell slightly in the European market on Wednesday to continue losses for the second day in a row, under the pressure of USD rising against a basket of global currencies, in conjunction with the slowdown in levels of investment demand on the assets of safe havens.
Gold prices fell by 0.1% until 11:15 GMT to trade at $ 1.288.65 per ounce from the opening level of $ 1,289.41, and recorded the highest level of $ 1,292.71, and the lowest level of $ 1,288.35.
Gold prices lost about 0.2% on Tuesday, the first loss in three days, as the US dollar rose.
The Dollar Index rose more than 0.1% on Wednesday, continuing its gains for the second day in a row, reversing the continued rally of the US currency against a basket of currencies, especially against the European currencies the Euro and the Pound Sterling, pushing the price of gold and other metals denominated in US dollars.
USD is rising against European currencies as the euro faces increasing concerns about the European economic slowdown, while the pound is currently facing concerns about the chaotic UK secession from the EU, especially after the British parliament overwhelmingly voted against the initial disengagement plan.
In contrast to the rise in the US dollar, which is pushing gold prices negatively for the time being, the level of investment demand on safe haven assets is slowing, especially as the US-China trade talks continue to progress.
Gold holdings with SPDR Gold Trust The largest global gold-backed index fund remained unchanged for the third day in a row at 797.71 metric tons.