Gold prices rose during trading on Tuesday, as the precious metal erased most of the losses of the previous session, as gold lost about $8 of its value after the end of trading yesterday, Monday.
In this regard, the rise in gold prices came against the backdrop of the decline in the US dollar, as the decline in the dollar often increases the demand for commodities denominated in the currency, including gold.
In today's currency market trading, the US dollar index fell by about 0.08% to reach 103.131 points; as the greenback was harmed by the Federal Reserve's statements issued yesterday; as Neel Kashkari, a member of the US Federal Reserve, believes that inflationary pressures are receding and the labor market is still strong, which strengthened expectations that the US Federal Reserve may continue to cut interest rates again at the November meeting, which reflected negatively on the dollar and positively on gold.
In addition, the escalating conflict in the Middle East continues to cast a positive shadow on gold as one of the most popular safe havens, as news reports indicated that Israeli officials reached an agreement on Tuesday regarding responding to Iranian missile strikes, with an official approval from the Cabinet awaiting the start of the operation.
These developments have raised market fears that the conflict will prolong and escalate into a regional war in which other parties will join, especially since Iran has already threatened to prevent any attempts to attack the Islamic Republic and vowed to take strict measures.
Gold prices now
Looking at Tuesday's trading, it is clear that spot gold futures prices rose by about 0.24% to reach $2,254.82 per ounce, while gold futures prices - for December delivery - rose by about 0.22% to record $2,671.10 per ounce.
