eCommerce

Gold is at a 6-week low, and the dollar is consolidating its gains

Gold is heading to record its worst week since late November, as it fell to a 6-week low today, Friday, with the rise of the dollar, and amid expectations that the Federal Reserve (the US central bank) will raise interest rates next March.

By 12:03 GMT, spot gold fell 0.6% to $1,785.10 an ounce, and US gold futures fell 0.5% to $1,784.40.

Gold prices rose to their highest level in more than two months earlier this week when heightened tensions over Ukraine and increased market volatility fueled interest in the safe-haven metal.

Prices have fallen by about 4% since then, after the Federal Reserve reconfirmed its plans to end its purchases of bonds at the time of the pandemic, and indicated that it would raise interest rates next March.

As for other precious metals, the price of silver in spot transactions fell 1.1% to $22.49 an ounce, and is on its way to declining 7% this week.

Platinum fell 2.1% to $1,000.96 an ounce, and palladium fell 2.5% to $2,317.71 an ounce.

The dollar is recovering

The dollar consolidated its gains on Friday, and is heading for the largest weekly increase in 7 months, as the gains of the US currency against other major currencies are supported by the expectations of raising interest rates.

And with the financial markets in mind, an expected hike in interest rates by 30 basis points next March, and increases collectively exceeding 120 basis points before the end of the year; The dollar is the focus of attention even as the broader currency markets have calmed down after an eventful week in global markets punctuated by a tendency to tighten at the Federal Reserve meeting.

Today, the euro trimmed its previous losses, after rising slightly to 1.1152 dollars from its lowest level in 20 months, which it reached on Thursday at 1.1131 dollars.

Major currencies moved in a narrow range up and down in Asian trading ahead of the Chinese New Year holidays next week, even as US bond yields registered a slight increase.

The US currency also received support from economic data, as the US economy recorded its best annual growth in nearly 4 decades.

The Japanese yen hovered around 115.43 against the dollar, while the Australian and New Zealand dollars fell, and the latter fell slightly to 0.6570 US dollars, its lowest level in 15 months.

Since the beginning of the week, the dollar has gained about 1.7% against the euro, and about 2% against the Australian and New Zealand dollars.

The dollar index jumped above 97 points for the first time since July 2020.

The pound sterling fell yesterday to its lowest level in a month at 1.3360 dollars, but it recovered to 1.3409 dollars, with traders awaiting the Bank of England meeting next week.



Reference-www.aljazeera.net

Leave a Reply

Your email address will not be published.