Gold prices fell slightly at European market on Friday, by virtue of correction and profit taking processes, following recording the highest level over three weeks yesterday. Prices are heading for achieving the first weekly gain in a month, based on the dollar’s decline against a basket of global currencies.
Gold prices fell by 0.1% as of 09:05 GMT to trade at $ 128.50 per ounce from the opening level of $ 1285.12 and recorded the highest level of $ 1287.05 and the lowest level of $ 1282.59.
Gold prices added yesterday 0.3% in the second daily gain respectively, and recorded the highest level in three weeks of $ 1288.58 per ounce, as the US dollar fell, and the stoppage of US stocks rise on Wall Street.
Throughout this week, gold prices rose 1.1%, and were close to achieve the first weekly gain in a month, supported by the US dollar decline against most of the major and minor currencies, and the decline of ten-year US bond yields to a two-week low.
The dollar index is trading near its lowest level in a week, on its way to the first loss in four weeks as the US currency selling transactions accelerated against a basket of global currencies, especially with the mounting concerns about the possible delay in US President Donald Trump’s tax reform plans. The US administration greatly relies on such plans to expanding the country’s economic growth and boosting the corporate profits.
The Republican Party introduced in the Senate, on Thursday, a new law draft for tax reform, that is different from the draft currently proposed from the same party to the House of Representatives. The draft includes a 20% to 35% reduction in corporate tax. The new tax law is supposed to come into force in 2019 .
SPDR Gold Trust, which is the world’s largest gold-backed index funds, remained unchanged yesterday at 843.09 metric tons, the lowest level since last September 12