Gold prices rise by 11 dollars with the decline of the US currency - Energy

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Gold prices rose in trading on Monday to its highest level in more than a week, supported by the weakness of the dollar.

The rise in gold prices came despite the rise in US Treasury yields, which limited gains in bullion priced in dollars.

Gold prices today

By 07:42 AM GMT (10:42 AM Mecca Al-Mukarramah), the price of the gold futures contract – next August delivery – increased by 0.59%, equivalent to $ 10.90, to record $ 1859.30 an ounce.

Gold prices ended last week’s trading with an increase of about 1.8%, achieving the first weekly gains since mid-April.

The spot price for the yellow metal also increased by 0.54%, recording $1,856.54 an ounce.

At the same time, the price of the silver futures contract – July delivery – rose by 1.18%, to reach $21.93 an ounce.

The spot platinum price also rose by 1.36%, recording $970.17 an ounce, and the spot palladium price jumped 3.27%, to $2029.19 an ounce.

dollar price

“The jury is still out on whether gold has weathered the storm in the medium term, or is just rising in response to the continued decline of the US dollar,” said OANDA chief analyst Jeffrey Haley.

The dollar index fell as investors continued to sell pressure, reducing bets for additional dollar gains from higher US interest rates, while hoping that easing the lockdown in China could help global growth and exporters’ currencies.

A weak dollar makes bullion more attractive to overseas buyers.

gold prices
Gold prices – archive

US bonds

“Before I turn structurally bullish, I will need to see gold hold on to its recent gains in the face of dollar strength, not dollar weakness,” Haley added.

The yields of the benchmark 10-year US Treasury bonds stabilized after a series of losses that lasted 3 sessions, which limited the demand for zero-yielding gold.

interest rates

For his part, St. Louis Federal Reserve President James Bullard reiterated his view last week that the US central bank should raise interest rates to 3.5% this year to control rising inflation more quickly.

Bullion tends to become less attractive to investors when US interest rates are raised; Because it produces nothing, however, it is seen as a safe haven asset during economic crises.

“The deteriorating macroeconomic outlook combined with rising inflation should remain supportive of gold, and the increased risk of underperformance in equity markets has reinforced its attractiveness in risk diversification,” ANZ said in a note.

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