Gold prices are at the lowest level in two weeks due to the rise of the dollar

Last Updated on February 4, 2021

Gold Prices Outlook: 4th February 2021

Gold prices retreated during today’s trading, in the European market, in the second consecutive daily loss, approaching its lowest levels in two weeks, which it reached earlier in yesterday’s trading. This decline comes due to the continued rise of the US dollar against several currencies, in addition to a slowdown in levels of Demand for the mineral as a haven.

This comes in conjunction with the upcoming economic developments and data in the United States, which include the announcement of new jobs in the US private sector during January, in addition to other data on the performance of the US services sector during the same month.

Gold prices are falling

The spot price of gold fell by about 0.3% until 09:15 GMT, to trade around $ 1832.58 an ounce, compared to today’s opening level at $ 1837.86, and early in the session, it was able to reach the highest price at $ 1845.00 per ounce.

At the close of trading on Tuesday, the precious yellow metal “gold” lost 1.25% in the first daily loss in the last three sessions, recording its lowest level in two weeks at $ 1829.53 an ounce.

XAUUSD chart - 4th Febuary 2021

What affected the price movements and pushed them to retreat is also the remarkable activity of selling operations to reap profits, after it earlier achieved the highest level in three weeks at 1875.61 dollars per ounce, in addition to the rise of the US dollar against several major and minor currencies.

The US dollar continues to rise

In terms of trading in the US dollar index, the index rose during today’s session by more than 0.15% to maintain its daily gains for the fourth consecutive session, registering its highest levels within two months at 91.13 points, reflecting the continuation of the widespread purchases of the US currency against most of the competing currencies. It is currently negatively affecting the prices of gold and other metals, which are denominated in dollars.

The recent rise in US currency levels comes thanks to the continued focus of investors on buying it as the best alternative investment, especially in light of the state of caution that currently dominates most of the global financial and stock markets, following developments related to the share of “HimeStop”.

This comes in conjunction with growing doubts about US President “Joe Biden” supporting the economy to confront the Coronavirus crisis, amounting to $ 1.9 trillion, after a group of Republican members of the US Congress proposed to reduce the size of the proposed stimulus package, and offered 600 billion dollars in urgent economic aid.

 

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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