Gold prices continues its losses during today trading


Gold prices retreated on Tuesday at the European market in continuance of losses which were temporarily halted yesterday; this fall comes along with drop in most US dollar-denominated metals, in concurrence with the weak investment demand for the metal as a safe haven amid strong gains in global equity markets.

Gold prices fell by 0.5% as of 10:20 GMT to trade at $ 1276.20 per ounce from the opening level of $ 1281.48 and recorded highest level of $ 1281.86 and lowest level of $ 1275.20.

Gold prices hiked yesterday by 0.9%, influenced by the US dollar fall, and the drop of the US 10-year yields to the lowest level over two weeks. Prices fell 0.5% on Friday after the launch of the US labor market data, which maintained the possibility of raising US interest rates in next December.

The dollar index rose by 0.5%, reaching the highest level in two weeks; 95.05 points, reflecting the acceleration of purchasing the US currency again against a basket of currencies, especially against the low-yielding currencies i.e. the Euro and Japanese yen. The rise of the US dollar negatively presses on the prices of metals and commodities denominated in the US currency, making it costly for consumers of other currencies.

Investors closely follow the news from Federal Reserve members, especially in the light of speculations that William Dudley, President of the Federal Reserve in New York, will retire in mid-2018.

The departure of Dudley means a significant change in the top three positions in the Federal Reserve in a relatively short term, especially after the US President Donald Trump announced last week the nomination of Jerome Powell as new President of the Federal Reserve in place of the current President Janet Yellen, whose appointment term will end in February, and Stanley Fischer, the vice chairman of the Federal Reserve, who resigned in mid-October.

In Japan, the Nikkei index hiked to the highest level over 26 years as sentiments rose after strong business results outstripped expert estimates. S & P 500 futures rose 0.2% to their ever highest level before the opening of Wall Street’s official trading session.

SPDR Gold Trust Fund, the world largest gold-backed index funds fell yesterday by 0.29 metric tons, in the fourth consecutive daily decline, to 845.46 metric tons, which is the lowest level of holdings since last 18th of September.

Hits: 1