The price of gold fell today, Tuesday, during the European session for the first time in four days, due to correction operations, after prices recorded yesterday the highest level in three months, in addition to the decline of most metals priced in US dollars, and limiting the decline in the price of gold is the continuation of global policy risks that Supports the process of buying the metal as a safe investment haven.
The price of gold rose yesterday, recording a rise of 1.2%, in the third consecutive daily gain, and recording the highest level in three months at 1235.50 dollars per ounce, supported by the continued acceleration of investment demand for gold.
And the gold price recorded over the past week, an increase of 2.4%, to resume its strong weekly gains, supported by purchases on safe investment havens in light of escalating concerns about the policy of US President Donald Trump.
On the other hand, the US dollar index rose by about 0.9%, to record the highest level in a week at 100.69 points, reflecting the acceleration of the dollar buying process against most currencies, especially the euro and the pound sterling, in light of the high policy risks in Europe, and the rise of the dollar negatively affects the prices of priced metals. US currency according to the inverse relationship between them.
Some economic institutions expect gold prices to rise by more than 6% until the end of this year, in light of the continuation of the gold process as a safe investment haven, and in light of the high global political risks, especially with the increasing chances of winning the far-right candidate in the French presidential elections, and Scotland’s announcement of a referendum About its independence from the United Kingdom, as well as the protectionist policy of US President Donald Trump.
As for gold holdings in the SPDR Gold Trust Fund, which is the largest index fund backed by gold, it rose on Friday by 4.14 metric tons, in the fourth consecutive daily increase, to a total of 818.65 metric tons, the highest level since last December 30.
Technical overview of the gold price
The price of gold is trading at the level of 1233.97, after it succeeded in rising, targeting the resistance level in conjunction with the presence of the Fibo line 50 on the time frame of four hours, as shown in the graphic
Trading is now taking place above the level of the average moving indicator line, as both the MACD and the Stochastic indicator show a positive crossover towards the bullish trend on the four-hour time frame.
Therefore, the price is expected to continue rising to target $1250.00 per ounce in the near term.