Gold prices hit a two-week high
Gold prices rose on Wednesday in the European market to continue gains for the second consecutive session, thus recording the highest levels of about two weeks, and this rise in prices recently comes as a result of improved levels of investment demand for safe assets, particularly gold and silver, and found prices support From the rise of the US dollar against a basket of major and minor currencies.
By 10:05 GMT, gold rose more than 0.2% to trade at 1205.35 US dollars an ounce from the opening level of 1203.14 dollars and hit a high of 1208.27 dollars since the 21st of September, while the lowest level 1202.27 US $.
The precious metal ended yesterday's trading 1.3% higher in the second daily gain in three sessions, recording its biggest daily percentage gain since August 24, as a result of improved levels of investment demand for safe assets Gold and silver.
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.
It is worth noting that this recent rise in gold prices is due to the relative improvement in the levels of investment demand on safe assets, especially amid the decline in risk appetite among investors in the financial markets, which was reflected by the decline in the majority of Asian stock markets and the decline in stock indices in Europe led by the banking sector, The lowest level in two weeks, and prices also found support as a result of increasing concerns about the budget in Italy and the likelihood of rejection from the European Union.
On the other hand, the US dollar fell during the day by 0.3%, approaching to record its first daily losses in six sessions, this came in the correction and profit after having recorded earlier trading at a three-week high of 95.37 points, reversing the rise of the currency US dollar against most other major currencies, which is currently contributing to the support of gold prices being priced in dollars and because of the inverse relationship between them.
In addition to the correction, the decline in the US currency is also ahead of the publication of several important data on the US economy on private sector jobs in the United States last September, in addition to several other data on the US service sector during the same month.
As for the gold holdings of the SPDR Gold Trust, the largest gold-backed global index funds fell yesterday by 2.35 mt in the second daily decline respectively to a total of 737.82 mt, the lowest level of holdings since 19 February 2016.