Gold prices rose on the European market on Friday to continue for the third day in a row, based on the decline of the US dollar against a basket of currencies, and prices have achieved the first weekly gain over the past three weeks, supported by improved purchases of the metal as a safe haven.
Gold prices rose by 9:35 GMT to $ 1255.95 an ounce from the opening level of $ 1250.26 and recorded a high of $ 1257.91 and a low of $ 1249.85.
Gold prices ended yesterday’s trading up 0.3 percent, the second daily gain in a row, on the back of the decline in risk appetite in the financial markets, especially the global stock markets with open sales of shares of energy companies and commodities.
The dollar index fell by about 0.3 percent, reflecting the decline of the US currency against a basket of global currencies, which supports the price of gold being dollar-denominated, and depreciating value for holders of other currencies.
The decline of the US dollar comes ahead of important data from the United States on the manufacturing and services sectors in June, after the comments of a member of the Federal Reserve, “Central American”.
James Bullard told the Wall Street Journal that the interest rate hike from US monetary policy makers was unnecessarily aggressive and advised the Fed to start sooner rather than later to reduce the balance sheet.
Gold prices rose 0.5% this week, and the first weekly gain in the last three weeks, as the US dollar fell, helped by improved safe haven purchases.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed index funds remained unchanged yesterday at 853.98 mt.