Gold prices rose on Wednesday in the first four-day gain, based on the fall of USD against a basket of currencies after the US midterm elections, which resulted in the Democratic Party winning the House of Representatives for the first time in eight years.
Gold prices rose 0.5% as of 10:22 GMT to trade at $ 1,235.02 per ounce from the opening level of $ 1,226.73, and recorded the highest level of $ 1,235.05, and the lowest level of $ 1,223.00.
Gold ended Tuesday’s trading down 0.3%, its third consecutive daily loss, after US stocks rose on Wall Street.
Gold prices
The dollar index fell more than 0.5% on Wednesday, extending its losses for the third day in a row, reaching a two-week low of 95.47 points, reversing the selling of the greenback against a basket of global currencies, which currently supports the rise in prices of gold and other metals denominated in US dollars .
USD has accelerated as concerns mount about the difficult legislative process in the United States, which will negatively affect the completion of President Donald Trump’s program, which needs more new laws in Congress.
These concerns were raised after the midterm elections, which resulted in the Democratic Party winning the House of Representatives majority for the first time in eight years, with the Republican Party retaining the ruling party by a majority of the Senate.
On the other hand, the Fed is starting its regular meeting to discuss monetary policy appropriate to the course of growth of the US economy, to be issued on Thursday, and most expectations to keep rates unchanged without a significant change in the range of 2.25%.
Investors are looking through the US monetary policy statement for new evidence on the possibility of raising interest rates at the December meeting for the fourth time this year, while waiting for expectations for a rate hike in 2019.
Gold holdings at SPDR Gold Trust The largest global gold-backed index fund fell yesterday by 0.59 metric tons, the third consecutive daily decline, bringing the total to 756.7 metric tons.