Gold prices rise with the decline in the US currency index

  • 09 September, 2021
  • 1:48 pm EEST

Gold prices rise with the decline in the US currency index

Gold prices rose, during trading Thursday, with the decline in the dollar index, and anticipation of a meeting with US officials at the end of this month, and the continued reduction of purchases of US Central Bank assets.


Gold prices today

The yellow metal futures contract, for December delivery, increased 0.17%, to $1,796.50 an ounce, as of 08:42 AM GMT.

While spot contracts increased by 0.31%, recording $1,794.85 an ounce.


Metal prices

Silver futures prices, for December delivery, increased by 0.31%, to $24.13 an ounce.

And the price of the platinum spot contract decreased by 0.18%, recording $985.23 an ounce.

This comes as the dollar index – which measures the performance of the currency against a basket of 6 major currencies – decreased by 0.10%, at the level of 92.5640 points.

Gold prices fell, at the end of trading yesterday, Wednesday, to keep the metal falling below the level of 1800 dollars an ounce, with the rise of the US currency.


Influential factors

A stronger dollar puts gold at risk of lower prices, said Geoffrey Haley, chief market analyst for Asia Pacific at Onda.

He added that investors’ continued concern about the pace of global recovery, and the continued rise of the US currency to the top, also affect the prices of the yellow metal, according to Reuters.

Asian stocks faced their worst day in two weeks, while the US Federal Reserve announced, yesterday, Wednesday, that the US economy fell slightly, in August, affected by the consequences of the recent outbreak of the Corona virus on travel, tourism and food.

It is scheduled to meet a number of officials and policy makers in America, on the 21st and 22nd of this month, as the central bank continues to reduce its huge purchases of assets this year.

Markets are awaiting the European Central Bank’s policy decision, today, Thursday, amid expectations that it will take steps to remove emergency economic aid and provide support in the coming years.

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