Gold prices on the European market jumped to a seven-month high Tuesday, extending gains for a third straight day, on the back of USD decline before the Fed’s first meeting in 2019, as well as the acceleration of safe asset purchases United Nations and China.

Gold prices rose by 0.4% until 11:10 GMT to trade at $ 1,307.80 per ounce from the opening level of $ 1,303.14. The highest level of $ 1,309.29 recorded the highest since June 14, 2018 and the lowest level of $ 1,302.73.

Gold prices rose marginally on Monday, their second consecutive daily gain, supported by the decline of the US dollar against a basket of global currencies.

Prices of gold rose 1.7% over the past week, resuming strong weekly gains that were temporarily halted last week for the first time in five weeks.

The dollar index fell by 0.2% on Tuesday, continuing its losses for the third day in a row, reaching a two-week low of 95.29 points, reflecting the continued decline of the US currency against most major and minor currencies.

The decline of the US currency comes amid the investors’ aversion to risk in high-yielding assets and the low probability of raising federal interest rates this year due to the high risks surrounding the US economy.

The first monetary policy meeting of the Federal Reserve will be launched later in the day in 2019, with decisions to be made on Wednesday, amid full prospects for US interest rates to remain unchanged at 2.50 percent.

Investors are focusing on the monetary policy statement and Federal Reserve Chairman Jerome Powell’s remarks, looking for new evidence for the future of tightening US monetary policy this year.

On the other hand, investors are playing risk in higher-yielding assets as renewed fears of trade disputes between the United States and China, especially after the US Justice Department has accused China’s Huawei of fraud.