Gold prices are falling near a one and a half month low
Gold prices fell during Monday's trading on the European market to resume losses, which stopped temporarily on Friday, to close again from the lowest levels in about a month and a half and recorded earlier in trading, and this decline in prices recently comes under the pressure of the US dollar against A basket of major currencies, which found support from the growing probability that the Federal Reserve will gradually increase interest rates in the coming period, especially in view of the strong growth of the world's largest economy.
By 10:35 GMT, gold was down around 0.5% to trade at $ 1185.85 an ounce from the opening level of $ 1191.96 and hit a high of $ 1192.34 and a low of $ 1184.57.
The precious metal ended Friday's trading up 0.8%, marking its first daily gain in three sessions, as recovery from its lowest level in about a month and a half at 1180.76 US dollars an ounce recorded earlier in trading.
During the month of September, gold prices recorded a 0.8% decline, marking the sixth consecutive monthly loss in the longest losing streak in more than 20 years. This recent drop in prices is under pressure from the slow pace of investment demand on assets This is in addition to the acceleration of buying the US currency as the best alternative investment.
For the same reasons gold prices fell 4.9% over the third quarter of this year, recording their second consecutive quarterly loss.
On the other hand, the US dollar rose during the day to trade near the two-week high of 94.97 points, reflected the continuation of buying the US currency against the majority of other major currencies, especially against the euro and the Japanese yen, which negatively affects the price of gold being priced in dollars and given Because of the inverse relationship between them.
The US Central Bank has raised US interest rates during its meeting last week for the third time this year to reach 2.25%, and the expectation is that the US Federal Reserve A fourth increase in December, as well as the possibility of raising them for three increases in the next year, and one increase in 2020.
Gold holdings of SPDR Gold Trust, the world's largest gold-backed fund, continued on Friday with little change for the eighth day in a row to remain at a total of 742.23 metric tons, the lowest level of holdings since February 19, 2016.