Monday, March 4, 2024

Gold surges strongly and comes close to breaking its all-time high! By Arab Trader


© Reuters. Gold surges strongly and comes close to breaking its all-time high! – It rose strongly during trading on Wednesday and closed near $20,148 per ounce, benefiting from the weakness of the US dollar due to the non-hike of US interest rates and the end of US currency tightening. The cycle has succeeded in adding more than $15 an ounce.

During Wednesday's trading, gold futures for February delivery rose about $22.25, or 1.08%, to $2,082, while spot contracts were up $13, or 0.62%, to trade at $2,080 an ounce. ounce.

Gold prices benefited during trading today due to the weakness of the US dollar in light of the inverse relationship between the two sides (generally gold rises when the dollar falls, while gold falls when the dollar rises, especially as gold appreciated. Against the US dollar), the US dollar (which measures the performance of the US currency) was 0.47%. It declined to settle near 100.99 points, which had a positive impact on the movements of gold.

According to data released by the Federal Reserve Bank of Richmond today on Wednesday, the US dollar was clearly damaged as a result of several factors, especially negative economic data, which reinforced market expectations of the end of the US currency tightening cycle. , showed negative data for the US Richmond Manufacturing Index in December. This month, for the second month in a row, official data revealed an 11-point contraction in the index, worse than market expectations. The previous reading of the Richmond manufacturing index, which saw the index contract only 4 points, was a contraction of about 5 points last November.

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At the same time, gold rose sharply, benefiting from the weakness of US bond yields in various terms, which boosted demand for gold as a safe haven. In this environment, the yield fell by 1.56% to register around 3.825%. The 20-year U.S. Treasury yield fell 1.56%. The dollar reflects negatively on trade.

Among other metal prices, spot contract prices rose 0.55% to $24.3615; Prices for next March delivery fell roughly 0.79% to $1,180.03, and contract prices rose 1.40% to around $1,009.00.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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