© Reuters. Gold is rising strongly towards $2,000 an ounce, so what is the reason?
Arabictrader.com – It rose strongly through Friday’s trading in light of some important developments that boosted demand for the yellow metal, led by US Federal Reserve Governor Jerome Powell’s statements a few hours ago about raising interest rates, in addition to negative developments regarding the US debt ceiling crisis.
During today’s trading, spot metal contracts rose by approximately 1.20%, and recorded about $1,980 an ounce. At the same time, gold futures contracts rose by 1.18%, and recorded about $1,983 an ounce.
Gold rose due to some developments that boosted the demand for it as a safe haven, foremost of which is the growing fears in the markets about raising the US interest rate again, especially after the statements of the US Federal Reserve Governor, which tended towards negativity on the US.
Gero Powell has stated that inflation is much higher than the US Federal Reserve’s target, and that the US Federal Reserve may not have to raise interest more due to the tightening of bank credit conditions, adding that the markets are pricing interest in a different path from the US Federal Reserve, and that the current data supports its destination. The view that lowering inflation will take time and the Fed has now come a long way in terms of uncertainty about the delayed effects of monetary policy.
At the same time, gold prices rose due to the weakness of the US dollar, as the US dollar index, which measures the performance of the US currency against about 6 major currencies, decreased by 0.55% and recorded about 103.04 points, and in light of the inverse relationship between the two parties, gold rose clearly, especially since prices denominated in US dollars.
At the same time, gold prices benefited from negative developments regarding the US debt ceiling crisis, as the White House issued statements indicating that the two parties must realize that understandings must be reached and that not everything they want will be achieved within the debt ceiling crisis agreement, and that if he negotiates The two parties were in good faith and realized that they would not get everything they wanted, so it is still possible to reach a solution to the debt ceiling crisis, but some Republican negotiators indicated that the debt ceiling crisis talks between the White House and the Republicans in the House of Representatives were temporarily stopped, and this had a positive effect on Gold movements over transactions.
Among the prices of other metals away from gold, spot contracts rose by 1.90% and recorded about $24.082 an ounce, while platinum contracts rose by 1.62% and recorded about $1075.30. Meanwhile, metal contracts rose by 4.57%, and recorded about $1516.53 an ounce.
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