Gold prices resume gains supported by the US dollar decline

Last Updated on October 3, 2020

Gold Price  Weekly Outlook: 1st October 2020

Gold prices rose on Thursday to resume its increasing that was stopped yesterday as part of a correction, in the process of achieving a third gain within the last four days, supported by the USD decline against most of the world currencies.

Gold prices rose by 0.75% to $ 1,900.29, from today’s opening level of $ 1,886.23, and reached the lowest level at $ 1,884.68.

According to mostly UK forex brokers, Gold ended yesterday’s trading, down 0.6%, in the first loss in the last three days, under pressure from the rise of most global stock markets.

gold prices

Gold prices rose after the USD decline

The USD index fell on Thursday by 0.2%, extending its loss for the fourth consecutive day, recording its lowest level in a week at 93.62 points, the current decline in US currency levels comes in light of improved investor sentiment in the markets, and the appetite for buying high-risk currencies, in light of the positive developments around the approval of new fiscal stimulus in the United States.

Government data revealed today that the number of unemployment claims in the United States decreased by 36 thousand to 837 thousand during the past week, while personal income decreased by 2.7%, while the PMI for US manufacturing declined to 54.6 points in September.

Tomorrow, the monthly jobs report in America will be released with expectations that the economy will add 900,000 jobs and the unemployment rate will drop to 8.2% in September.

The administration of President “Donald Trump” proposed a new fiscal stimulus package worth more than $ 1.5 trillion to the Democratic House of Representatives, as part of the intense talks between the two parties to find a compromise on the new relief package from the Coronavirus.

At the close of trading, gold futures contracts for December delivery rose 1.1%, or $ 20.80, to $ 1916.30 an ounce, the highest close since the eighteenth of September, and the precious metal recorded the highest price at $ 1917.9 and the lowest price at $ 1890.

 

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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