Gold prices are managing to recover sharply, so why? Rolling Arab

Arabictrader.com – It saw a strong rally in trading today, Wednesday after two days of heavy losses, and it hit the highest levels of $ 1,710 an ounce in light of rising demand for the yellow metal and the decline of the United States. dollar significantly during trading.

During Wednesday’s session, the spot metal hit the highest levels of $ 1,710 an ounce and posted around $ 1,713 an ounce. Gold futures also stabilized, posting levels of $ 1,715.00 per ounce.

The American, which measures the performance of the US currency against around 6 currencies in today’s session, fell below 93.10 points and scored around 93.04 points simultaneously, while the rise of the dollar lowers the price of gold, and vice versa, but this relationship is currently affected by the developments of the Corona virus and the risk appetite in the markets.

Gold prices rose sharply during trading today, Wednesday, coinciding with the weakness of the US dollar index in light of weaker demand for the US dollar in light of weak data on employment in the U.S. private sector, while data released today showed an increase in the number of jobs in the U.S. non-farm private sector ADP by 517 thousand jobs during the month of March that ended today, Wednesday, below market expectations which indicated an increase in the index of about 552 thousand jobs, raising slight concerns about the slow recovery of the US economy and the employment of the repercussions of the emergence of the Corona virus rapidly, and a negative impact on the dollar and support for rising gold prices.

Despite this, gold prices are still under pressure, with the US dollar benefiting from rising US bond yields as the 10-year yield surpassed 1.77% in Tuesday’s trading session, which strengthened the strength of the US dollar against other major currencies during Tuesday’s session. the last period.

It should be noted that gold prices fell during the last trading period below levels of $ 1,750 an ounce in light of the rise of the US dollar along with the rise in yields on US bonds and the optimism that the US economy will quickly recover from the repercussions of the novel Corona virus outbreak in conjunction with positive economic data, particularly market data on labor and inflation, which could push the Reserve federal government to quickly end the current monetary easing.

Among the prices of other metals, contracts rose during trading today, Wednesday, 1.57% to about $ 24,517 an ounce. While it rose 1.93% and registered around $ 2,618.50 an ounce. However, platinum contracts rose 2.65% and registered around $ 1,191.65 an ounce.

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