Gold prices rise for the third session based on the dollar’s decline

Last Updated on February 3, 2021

Gold Prices Outlook: 22nd January 2021

Gold prices rose during today’s session in the European market, to maintain their daily gains for the third consecutive session. In the face of inflation, after “Janet Yellen”, the candidate for the post of US Treasury Secretary, stressed the need for a major stimulus to help the economy recover from the Coronavirus crisis.

Gold prices moving

XAUUSD chart - 21st January 2021

 

The spot price of gold rose by 0.6% until 08:50 GMT, to trade around 1850.66 US dollars an ounce, compared to the opening level at 1839.80 dollars, and reached early in the session the lowest price at 1838.55 dollars an ounce.

While the US gold futures rose by 0.5% to the level of 1850 dollars an ounce.

At the end of yesterday’s trading, the precious metal was able to end the session, up by 0.55%, in the second consecutive daily gain, and this rise came within the continuation of recovery operations from the lowest level in seven weeks at 1803.32 dollars an ounce, and with the support of the decline in dollar levels against a number of competing currencies.

The USD decline

In terms of the US dollar index trading, the index declined during today’s session by more than 0.2% in the third consecutive daily loss, reflecting the continued selling of the US currency against most major and minor currencies, which currently contributes to supporting gold price movements as it is priced in dollars and the existence of an inverse relationship between them.

In her nomination hearing before Congress, “Janet Yellen” (a candidate for the position of US Treasury Secretary) stated that it is necessary to continue support for small companies and the unemployed in order to support the US economy in the face of the negative repercussions of the Coronavirus pandemic.

Yellen urged lawmakers in Congress to “act aggressively” in efforts to rescue the economy affected by the pandemic, adding that her country is ready to confront “abusive” Chinese trade and economic practices and that the Biden administration will not seek to weaken the dollar.

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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