Gold prices are rising thanks to the strength of investment demand

Last Updated on May 3, 2021

Gold prices rose during today’s trading session in the European market in the first session of the week. As prices received more support today thanks to the clear improvement in investment demand levels for the metal as one of the best safe havens amid continuing concerns about the exacerbation of the spread of the Coronavirus in India and its transformation into a global crisis At the present time.

Gold prices continue rising

The Gold prices rose during immediate transactions by 0.2% until 10:25 GMT, trading the price of an ounce around the level of 1779.15 US dollars, from today’s session opening level at 1776.11 dollars, and early in the session, it reached the lowest price at 1774.02 dollars.

Gold prices

Gold also rose in US futures by 0.2%, recording the level of 1780.30 dollars an ounce.

At the close of trading on Friday, the precious metal “gold” lost 0.4% in the second consecutive daily loss.

Over the course of last week’s transactions, gold prices were able to achieve 0.1% gains, to record their third consecutive weekly gain, thanks to the decline in the dollar’s ​​levels against a number of competing currencies.

Demand improved

The levels of demand for the metals, being one of the most important safety, have been renewed at the beginning of this week’s trading, due to the exacerbation of the Coronavirus crisis in India, which is about to turn into a new global crisis, in light of the shortage of treatment places in Indian hospitals.

Cases in India recorded a record increase, while Japan declared a state of emergency in Tokyo, Osaka, and two other provinces on Friday to cope with the increasing rate of infections.

But what curbed the gains in gold was the rise in the yield of the US Treasury bonds category ten years, which rose by 2.5% Monday to a rate of 1.599%, which is the highest level in a week, which increases the opportunity cost of owning the metal that does not generate a return.

Investor sentiment remains high, with the succession of strong economic data in most parts of the world, which indicates that the global economy is recovering better than expected from the negative repercussions of the viral pandemic.

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

Relevant news