• Gold declines due to profit taking after a rally driven by the US central expectations


    ​Al-Eqtisadiah from Riyadh​

    Gold fell today at a time when investors sold the precious metal for profit-taking after prices rose to the highest level in more than a week due to grim economic forecasts issued by the Federal Reserve (the US central bank).

    Gold fell according to "Reuters" at 0.5 percent online transactions to $ 1728.40 per ounce (an ounce) by 06:30 GMT, after reaching its highest level since the second of June at $ 1739.68 earlier in the session. Rose US Gold futures 1 percent to $ 1737.80.

    "Gold has had difficulties at these levels over the past two months and this is probably the reason why we are seeing profit-taking being launched again," said Onda's analyst Craig Erlam. "We are also seeing some recovery for the dollar, which is likely to put pressure on gold prices today," he added.

    Yesterday spot gold prices rose 1.3 percent, the largest daily increase in percentage terms in more than a month after the US central bank said it will be a long way to recover from a drop caused by the Coronavirus pandemic.

    The central bank reiterated its pledge to continue exceptional support and indicated the need to keep interest rates near zero until at least 2022. Significant stimulus measures and low-interest rates usually support gold, which is often seen as a hedge in the face of inflation and currency depreciation.
    Investors are awaiting the US jobless claims data due later in the day. While the pace of layoffs has slowed down, millions are still unemployed, indicating that it may take years for the labor market to recover from the pandemic.

    For other precious metals, silver fell 2.5 percent to $ 17.79 an ounce, after rising 3.8 percent on Wednesday. Palladium fell 0.5 percent to $ 1937.88 an ounce, and platinum fell 0.7 percent to $ 826.66.​

© All Rights Reserved for Asharqia Chamber