Gold prices give up their highest level in 8 weeks

Last Updated on November 9, 2021

Gold prices fell during today’s trading session in the European market, to give up their highest levels in nearly eight weeks, recorded earlier in the Asian market transactions.

This comes at a time when investors are awaiting the statements of “Jerome Powell”, Chairman of the Federal Reserve, which is expected to provide more new indications about the future of monetary policy tightening in the United States.

Gold prices are falling in a limited range

Gold prices

Gold fell during spot transactions by about 0.3% until 09:50 GMT, to trade around the level of 1812.43 US dollars an ounce, from the opening level of today’s session at 1818.31 dollars, and reached early in the session the highest price at 1821.40 dollars an ounce, the highest since the seventh of September the past.

In the US futures contracts, gold fell by about 0.2%, recording the level of 1819.89 dollars an ounce.

It is noteworthy that the precious metal “gold” had ended trading on Friday, rising by 1.5%, in the second daily gain in a row, and the largest daily gain in percentage since the thirteenth of last October, as prices received more support recently thanks to the increasing investor demand for the metal As a safe haven after the recent decisions of the major global central banks.

For the same reasons, gold prices were able to achieve gains of 1.9% over the course of trading last week, to record their largest weekly gains in the last three months.

The US dollar index is falling

The US dollar index fell during today’s session by about 0.1%, in the second consecutive daily loss, to move away from its highest level in fourteen months at 94.62 points. This currently contributes to supporting the price movements of gold and the rest of the other metals priced in dollars due to the existence of an inverse relationship between them.

But despite the loss that the US currency witnessed today, it was able to achieve over the past week gains of more than 0.1%, in the second consecutive weekly gain, with some of the largest global central banks retracting bets on raising interest rates at a time early.

Jerome Powell’s statement

Federal Reserve Chairman Jerome Powell said last week that the central bank will be patient in making any decisions about when to raise interest rates, and indicated that high inflation at the present time is temporary, and may not require a rapid rise in interest rates.

Powell reiterated the Board’s commitment to using its full monetary tools to support the US economy at this difficult time, with the goal of achieving employment and price stability goals.

 

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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