Gold prices jump to 10-month high on weak US dollar

Gold prices on the European market jumped to its highest level in 10 months on Tuesday, extending its gains for a fourth straight day, on the back of a weaker USD against a basket of currencies as the metal’s precious appeal surged as the best safe investment.

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Gold rose by more than 0.2% as of 10:55 GMT to trade at $ 1,329.15 per ounce from the opening level of $ 1,326.15. The highest level was $ 1,330.10 since April 25, 2018 and the lowest level at $ 1,322.85.

Yesterday, gold prices rose 0.4%, the third daily gain, supported by the decline of the US dollar against a basket of currencies.

The price of metal rose 0.5% over the past week, the third weekly gain in a month, supporting demand for safe investments, and after decline of the dollar against a basket of currencies.

Dollar Index fell by less than 0.1% on Tuesday, continuing its losses for a fourth consecutive day, reflecting the weak performance of the greenback against a basket of major and minor currencies, which is currently in favor of the prices of gold and other metals denominated in US dollars.

Apart from the weakness of USD, gold prices also support the metal’s bullish appeal as the best safe investment, with most global central banks moving to maintain soft monetary policies and low interest rates to counter the global economic slowdown and weak inflation.

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