Gold prices rose on the European market on Thursday as the US dollar fell against a basket of world currencies, especially the single European currency, and curbing the gains to overcome the psychological barrier at $ 1,300 an ounce, in addition to the possibility of raising US interest rates next week.
Gold prices rose by 0.2% as of 10:45 GMT to trade at $ 1298.50 per ounce from the opening level of $ 1296.41 and recorded the highest level of $ 1299.55 and the lowest level of $ 1295.53.
Gold prices ended Wednesday’s trading stable with little change, especially with the difficulty of exceeding prices for psychological barrier at $ 1,300 an ounce.
USD index fell 0.4% on Wednesday, extending its fourth consecutive day of decline, reaching a three-week low of 93.18 points, reflecting the continued decline of the greenback against a basket of major and minor currencies, especially against the euro.
Euro’s rise is currently supported by speculation that the ECB will end the monetary stimulus program and begin tightening monetary policy this year, as well as the easing of political concerns in Italy after the formation of the coalition government.
Stopping gold gains beyond the psychological barrier of $ 1,300 per ounce, the 100% probability of a mid-week Federal Reserve meeting raising interest rates by a quarter percentage point to 2.0% is the second increase in US interest rates this year.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed indexes fell yesterday by 3.54 metric tons, the second consecutive daily decline, to a total of 832.59 metric tons, the lowest level since February 26.