Gold prices usually rise when the dollar declines (AFP)
registered gold prices An increase today, Tuesday, amid a decline for the dollarAnd it is likely that the prices of the precious metal will remain in the near term dependent on US economic data that is expected to be published this week and may affect the strategy of the Federal Reserve (American Central Bank) on interest rates.
Spot gold rose 0.2 percent to $1935.04 an ounce by 06:06 GMT, and US gold futures rose 0.4 percent to $1935.60.
Major economic centers such as China and Hong Kong remain closed for the Lunar New Year holidays.
Investors are awaiting estimates for US gross domestic product growth for the fourth quarter of last year, due to be published on Thursday.
“Any indications of weakness in the US economy will be seen as a reason for the Federal Reserve to ease the pace of tightening, which would support gold, which will attract safe-haven flows,” said Matt Simpson, senior market analyst at City Index.
Low interest usually supports gold prices, as it reduces the opportunity cost of holding non-yielding assets.
As for other precious metals, spot silver rose 0.3 percent to $23.52 an ounce. Platinum rose 0.8 percent to $1,055.25. Palladium rose 0.5 percent to $1,712.57.
The dollar is near its lowest level against the euro in 9 months
The dollar hovered on Tuesday, near its lowest level in nine months against the euro, and gave up recent gains against the yen, at a time when traders are assessing the prospects of a recession in the United States as well as the path of the US central bank on interest rates.
The dollar index, which measures the US currency against a basket of six other currencies, including the euro and the yen, fell 0.12 percent to 101.89, and is heading back to its lowest level in seven and a half months, which it recorded last week.
The euro rose 0.08 percent to $1.0880, approaching Monday’s peak at $1.0927, which was the highest since last April.
The single European currency is receiving support from comments from European Central Bank officials that point to more aggressive monetary tightening in the coming period.
The latest of these statements was issued yesterday, Monday, by the President of the European Central Bank, Christine Lagarde, who reaffirmed that the bank will continue to raise interest rates quickly to curb inflation, which is still very high.
The dollar fell against the yen to 130.11, after two sessions of strong gains, and the pound sterling increased 0.12 percent to 1.2391 dollars.
(Reuters, The New Arab)
