Gold prices achieved a strong rise for the second consecutive session, during trading on Thursday, supported by the decline in the US dollar index, along with the markets’ close anticipation of the release of consumer price index data in the United States for the month of July, which will be issued shortly, which will have a strong impact. On the trading of both the US dollar as well as gold metal.
In addition, concern about the escalation of geopolitical tensions between the United States and China, especially after US President Joe Biden signed a bill to ban some US investments in Chinese technology, and this raised the demand for gold as a safe haven.
In terms of the standard gold metal contracts traded on Thursday, spot contracts for gold metal witnessed a strong rise, by 0.42%, and recorded about $1,922.52 an ounce, in addition to an increase in gold futures contracts by about 0.21%, to reach $1,954.60 an ounce.
In this context, gold prices found strong support during today's trading, from the drop in the US dollar index, which measures the performance of the US currency against a basket of 6 other foreign currencies, in light of an inverse relationship between them. It raises the attractiveness of the commodities and minerals denominated in it, especially the gold metal, because it weakens the cost of owning it, and in this regard; The US dollar index decreased by 0.35% and reached 102.115 points, which contributed to a clear rise in gold prices during trading.
Also, gold prices enjoyed a clear turnout in terms of trading on Thursday, in conjunction with the growing fears of an escalation in geopolitical tensions between the United States and China, especially after US President Joe Biden signed a bill banning or restricting some American investments in Chinese entities and companies, This reinforced the rise in gold prices, as it is considered a safe haven, which investors resort to in light of the major global geopolitical tensions.
In addition, the United States declared a national emergency that prevents dealing with countries such as China in sensitive technologies and products of importance to the military or intelligence, as well as advanced electronic capabilities, to raise concerns and fears in the markets about the possibility of exacerbating geopolitical tensions between China and the United States.
Moreover, the markets are closely awaiting the release of consumer price index data in the United States for the month of July, as it is scheduled to be released later today, which will have a strong impact on the upcoming US Federal Reserve decisions regarding interest rates, due to its strong importance. And then it will be reflected in the performance of the US dollar and the gold metal.
With regard to the prices of other precious metals, we find that silver contracts recorded during trading on Thursday an increase of 0.45% and reached 22.77 dollars, in addition to the increase in platinum prices by 0.90% to record 900.66 dollars. as well; Palladium prices recorded an increase of about 2.07%, to approach $1,264.08.
