July 21, 2021

This Is The Reason Why The Price Of Gold Rises Again Even Though The USD Is Strong!

 Investors at the opening of the European session saw a rebound exhibited by the price of gold after hovering around the $ 1,800 per ounce price in the previous session.

Spot gold traded higher at $ 1,811 per ounce as the market moved into the European session, while gold futures were positive at $ 1,812 per ounce.

Gold trading has garnered support from a slump in 10 -year U.S. treasury yields to a five -month low, as the greenback dollar continues to show strength amid concerns over a growing coronavirus outbreak.

The decline in bond yields failed to attract the US dollar to depreciate with it, in fact the king of the currency was traded higher than other major rivals because of its value which is also considered a safe-haven.

The number of daily cases of coronavirus worldwide continues to show an increase, particularly Australia and Indonesia which are severely affected by the Delta virus variant. The United States has also seen an increase in cases, especially in areas that have not yet been vaccinated.

This has benefited currencies and safe-have assets to rise, but the US dollar traded stronger as it was also supported by the prospect of tightening in US monetary policy.

Meanwhile, on the other hand, silver rose slightly 0.6% at $ 25.15 an ounce, after hitting a more than three -month low at the start of the Asian session.