Gold Closes Higher as USD Declines

Gold prices declined as the US dollar rebounded, but the precious metal is on its way to achieving a weekly gain, supported by fears about the global economy recovering from a decline caused by the Corona virus.

Before the Tokyo Stock Exchange closed, gold in spot transactions fell 0.8% to 1938.53 dollars an ounce, after reaching its best level since the second of September at 1965.94 dollars on Thursday.

Gold is up 0.3% since the start of this week.

US gold futures fell 0.9% to $ 1945.50.

“The recovery in the US dollar index drove gold prices down following the neutral tone of the European Central Bank yesterday,” said Margaret Young, an analyst at the DailyFix who covers currency, commodity and indices trading.

“The outlook for gold in the medium to long term remains positive.”

The dollar index recovered from a significant decline against the euro in the previous session and is on track to record its best weekly performance since mid-May. A stronger dollar increases the cost of gold for holders of other currencies.

Weekly jobless claims in the United States hovered at high levels last week, indicating a slowdown in the labor market recovery and casting doubt on hopes for a quick economic recovery.

Gold prices have risen 28% since the beginning of this year, as governments and central banks pumped huge stimuli into the economy and kept interest rates low to ease the economic repercussions of the Corona virus.

As for the other precious metals, silver fell 1.3% to $ 26.58 an ounce, and palladium lost 0.7% to $ 2,277.97.

Platinum fell 0.4% to $ 922.29, but it is on track to achieve its best weekly performance since the week ending on August 7, up 3%.