Gold prices fell on Thursday, under pressure from the US dollar,...

Arabictrader.com – It fell on Thursday as dollar strength and fears of an early cut in stimulus by the US Federal Reserve weighed on sentiment, although losses for the safe-haven metal were limited by concern that rising coronavirus cases will slow global growth.

“The dollar is trading higher, but is crawling again with little support mainly due to the turmoil in the stock markets, and the safe-haven gains of the US dollar affected the attractiveness of gold, as the dollar rose to the highest level,” said Edward Meir, analyst at ED&F Man Capital Markets. In nine months against its competitors, the American, which measures the performance of the currency against a basket of 6 major currencies, reached 93.35 levels, up by 0.22% on a daily basis, which made gold more expensive for holders of other currencies.

Due to the strong rise of the US dollar index, this limited gold prices to record further gains during the day. The rise of the US dollar was reinforced by the points in the results of yesterday’s US Federal Reserve meeting, and the minutes of the Federal Reserve meeting in July showed that officials expect to be able to ease stimulus this year, although there is division over the labor market recovery, said Daniel Pressman, an analyst at Commerzbank. The only thing that is not yet clear is when this taper might happen, however, tapers are priced back into gold now.

Talks and concerns about rising delta cases of the coronavirus have reduced risk sentiment in the broader financial markets, pushing investors towards safe haven assets, and it appears that the delta mutant is beginning to expand and spread more widely during the current period with the noticeable increase in the pace of new infections in the United States. And Australia, New Zealand and Germany, which warns that the deteriorating health situation is no longer limited to Asian countries, and Craig Erlam, an analyst at OANDA, said: The role of gold as a safe haven appears to be somewhat safe, after the intense selling in risky assets across the board.

Meanwhile, data showed that the number of Americans filing new claims for unemployment benefits fell to a 17-month low last week, confirming recent views from Federal Reserve officials about a labor market recovery, and elsewhere, it fell 0.9% to 23.28. dollars per ounce

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