On Wednesday gold prices has backed down in the Europe market to extend its losses for the third day in row, record the lowest level in one week, because of the USD increasing against international currencies, which is supported with choosing a new federal reserve president “American Central” who’s tend to tightening the monetary policy.
Gold prices have backed down by 0.4% till 9:40 GMT to trade at the level 1280.35$ for ounce from the opening level 1284.96$, and record the highest level 1288.96$, and the lowest level since 9 of current October 1279.576$.
Gold prices have lost yesterday by 0.8%, in a second daily loss in a row, with continuing recovery process from the highest level in three weeks 1306.04$ for ounce, and because of USD increasing.
USD index has increased by 0.3%, to continue its increasing for the third day in row, recording the highest level in two weeks 93.64 points, reflecting continuing acceleration in purchasing the USD against international currencies, especially against the low profits currencies EUR and JPY, and that’s effect negatively on most metals prices and goods which are supported with USD.
Increasing the USD comes under the strong probability of increasing the interest prices for the third time in the next December by the federal reserve, adding to the market Aspirations about who’s going to lead the federal reserve after Janet Yellen in February 2018.
The resources confirmed that the American president Donald Tramp is preferred that the new federal reserve governor tends to tighten the monetary policy, and now he’s choosing between five candidates, and he may announce about him before his travel to Asia in the first of next November.
The five candidates are current federal reserve president Janet Yellen, Gary Cohen the biggest economic adviser for Trump, John Tylor the professor of economics at Stanford University, Jerome Paul one of the members of the current federal reserve and Kevin Warsh the last member of the federal reserve.
And there’s a news that John Tylor got Donald Trump admiration at last week meeting, and Tylor wants to accelerate the tightening of monetary policy and always suggests higher interest prices.
Gold holdings are in the biggest international indexes boxes SPDR Gold Trust box which is supported with gold has stables yesterday without any change mentioned and that’s for the second day respectively at total 853.13 metric tons, and that’s holdings level in more than one week.