The rise of gold with the decline of the dollar and the increase in demand for safe havens

Gold prices rose on Tuesday, as the pause in the dollar’s rally and the energy crisis in Europe prompted some investors to buy the safe-haven metal.

And gold rose in spot transactions 0.5% to $ 1718.30 an ounce, by 0648 GMT. Prices rose earlier by about one percent to their highest levels in a week.

US gold futures also rose 0.4 percent to $ 1729.40.

The dollar index fell 0.1 percent, but it was not far from its highest level in 20 years, which it reached in the previous session.

The indefinite shutdown of gas supplies via Nord Stream 1, the main supply line to Europe, has heightened fears of a recession in the region, with higher energy prices hurting consumers.

Monday’s survey also showed that the Eurozone is entering a recession with the worsening cost-of-living crisis and pessimistic outlook.

Although gold is seen as a hedge against inflation and economic uncertainty, higher US interest rates increase the opportunity cost of holding non-yielding bullion and boost the dollar.

As for other precious metals, silver jumped in spot transactions 1.1 percent to $ 18.36 an ounce, platinum rose 0.7 percent to $ 851.25, and palladium rose 1.6 percent to $ 2065.96.