Due to the pressures of the dollar, gold is near the important level in today’s trading
Due to the pressures of the dollar, gold is near the important level in today’s trading
08.06.2021 – 10:05
Baghdad – people
Gold prices fell, during Friday’s trading, to stay near the important level of 1800 dollars an ounce, as it came under pressure from the stronger dollar.
And gold fell in spot transactions 0.3 percent to $ 1799.46 an ounce, by 05:17 GMT, and is heading towards recording the worst weekly performance since mid-June 2021.
US gold futures fell 0.4 percent to $1,802.50 an ounce.
Are we witnessing a collapse in gold prices?
“If we get a mix of really strong employment numbers that come on the back of a monetary tightening rhetoric from the Federal Reserve, I think that will spook any interest rate sensitive markets,” said Stephen Innes, managing partner at SBI Capital Asset Management. like gold”.
“That is why we are seeing risk reductions right now,” he added, but added that a complete collapse of gold is highly unlikely, and that the $1,790 support level should hold.
Concerns about a gradual reduction in stimulus began after Richard Clarida, Vice President of the US Federal Reserve (Central Bank) said that the conditions for increasing interest rates may be met in late 2022, and that the central bank may begin to scale back its asset purchase program this year.
The rise in interest rates reduces the opportunity cost of owning the yellow metal, which does not generate returns. The dollar index rose 0.1 percent, reducing the attractiveness of gold to holders of other currencies.
As for other precious metals, silver settled at $25.12 an ounce and fell by 1.4 percent in the week. And platinum fell 0.4% to $ 1001.66 an ounce and is heading towards recording the largest weekly decline since June 2021.
Palladium rose 0.2 percent to $2,652.93.
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