© Reuters Why did gold rise and recover strongly from the losses of the last session?
Arabictrader.com – It rose significantly by the end of the week’s trading and succeeded in compensating a large part of its losses that it achieved in the previous session due to fears about strengthening again, which escalated during the last session after the issuance of many positive US economic data, especially during the second quarter of this year.
In terms of trading today, spot metal contracts rose by 0.92% and recorded about $1,963.44 an ounce, while gold futures contracts recorded an increase of 0.85% and settled near the level of $1,962.15 an ounce.
Gold prices rose clearly in conjunction with the weakness of the US dollar, which measures the performance of the US currency against a basket of 6 other major foreign currencies with the passage of trading, and in the presence of an inverse relationship between the two parties, gold rose benefiting from the decline in the US dollar, and in this context, the dollar index fell The American dollar increased by 0.25% and scored about 101.52 points, which boosted the rise of gold.
Gold prices benefited during today’s trading with the support of weak US economic data, on top of it, as the basic personal consumption expenditure index in the United States recorded around 4.1% during the month of June, which is lower than the market’s expectations as well, which indicated that the index recorded about 4.2% in the same period. Period. The previous reading recorded about 4.6% last May, which raised concerns about the Fed’s tendency to raise interest again due to the health of its path and its success in reducing inflation now.
In addition, gold prices also benefited from the negativity of US consumer confidence data, and the data released today, Friday, showed that the revised reading on US consumer confidence issued by the University of Michigan recorded about 71.6 points during this July, less than market expectations, which indicated a reading The index is about 72.6 points only, while the previous reading of the index had recorded about 72.6 points during last June, and this data led to a positive impact on the movements of gold and a clear weakness of the dollar.
With regard to the prices of other precious metals and away from gold today, spot contracts on the margins of today’s trading recorded an increase of 0.62% and reached $24.517. In addition, prices increased by 0.40% and recorded about $1,241.53, while platinum prices decreased by 0.01% and reached to 944.95 dollars.
2023-07-28 18:00:00
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