Gold prices rise and US interest rates are likely to limit gains

Gold prices rise and US interest rates are likely to limit gains
Gold prices 

Gold prices rise and US interest rates are likely to limit gains

Gold prices rose Thursday in the European market to resume gains, which were temporarily suspended during trading yesterday as part of the correction and profit after the highest levels in about two weeks and recorded earlier in trading, this was based on the suspension of the rise of the US dollar against a basket of currencies However, gains have remained limited as a result of the growing likelihood that the US Federal Reserve will raise interest rates for a fourth time during its meeting in December.

By 10:40 GMT, gold was up 0.2% at $ 1199.15 an ounce from the opening level of $ 1197.50 and hit a high of $ 1201.00, while the low of $ 1195.98.

The precious metal ended yesterday's trading down 0.5%, due to correction and profit taking after hitting a two-week high of $ 1208.27 an ounce recorded earlier in the session. Prices were also negatively impacted by the large dollar appreciation The US is facing a basket of major currencies, in addition to weak levels of investment demand for safe assets, mainly gold and silver.

On the other hand, the US dollar fell during the day by more than 0.1%, due to corrective operations and profit after the highest in a month and a half at 95.77 points, reversing the cessation of purchases of the US currency against the majority of other major currencies, which currently contributes In support of gold prices being priced in dollars and because of the inverse relationship between them.

Despite the decline in the US currency today, the majority of expectations for the continuation of the federal currency to achieve strong gains against the majority of major currencies and secondary, especially after the strong data released yesterday in the United States, and contributed to these data to enhance the possibility of increasing prices The US interest rate for a fourth time this year in December, and raised the yield of ten-year US bonds to the highest levels in seven years.

The data showed a higher-than-expected increase in US non-farm payrolls last September, and the US services sector grew at the highest pace since 2008.

US Central Bank Chairman Jerome Powell said Wednesday that the central bank may raise interest rates at a higher rate than expected, if the world's largest economy continues to grow positively.

Gold holdings in SPDR Gold Trust, the world's largest gold-backed fund, fell by 6.18 mt in the third consecutive daily decline to a total of 731.64 mt, the lowest level since 19 February 2016.

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