Gold prices fall from two-week high on demand concerns

Last Updated on August 2, 2021

Gold prices fell during trading today in the European market, to continue their losses for the second consecutive session.

Gold prices keep trading over $1800

Gold prices

By 09:50 GMT, the spot price of gold was down by 0.4%, to trade around the level of $1806.39 an ounce, from the opening level of today’s session at $1814.00, and the highest price was at $1816.95 an ounce.

Gold in US futures also decreased by 0.2%, recording the level of $ 1810.90 an ounce.

It is noteworthy that the precious metal, “gold”, had closed trading on Friday, down by 0.8%, after hitting its highest level in two weeks at $1,832.66 an ounce the previous day, and after strong data on consumer spending in the United States during the month of June.

However, over the course of the past week’s trading, gold prices managed to achieve gains of 0.7%, to record their fifth weekly gain in a month and a half, as prices received more support recently thanks to the decline of the US dollar after the Federal Reserve meeting.

Demand concerns

Actual demand for gold fell broadly in India over the past week, as higher prices slowed retail purchases, and in China purchases of the precious metal were largely lackluster.
U.S. dollar

In terms of the US dollar index trading, the dollar index fell during today’s session by about 0.2% to resume its losses that were temporarily halted during the previous session, to approach again touching its lowest level in four weeks at 91.78 points, reflecting the renewed selling of the US currency against most global currencies, the matter Which contributes favorably to support the prices of gold and other metals priced in dollars due to the existence of an inverse relationship between them.

This drop in dollar levels comes in light of the preceding possibilities of imminent tightening of monetary policy in the United States, especially after the Federal Reserve’s meeting in the middle of last week.

 

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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