The value of gold showed an increase in Monday's trading for a positive early -week market opening for the precious commodity after experiencing a steady decline until last week.
Gold prices have slipped to a nearly 1 -year low in the past week, hovering around the $ 1,700 price zone following strengthening pressure by the US dollar.
The US dollar however started moving gloomily again at the end of last week after strengthening reaching a 20 -year high.
Being the focus of policy tightening by the central bank, the Federal Reserve (Fed) signaled for a 75 basis point rate hike for next week’s meeting that is expected to further add pressure on current trading in gold.
Turning to the development of crude oil commodities, the oil market worried investors with the report of the fall in black gold.
Oil prices fell $ 1 in early trading of the Asian session this morning, easing back on gains last Friday.
The focus is on concerns of an increase in Covid-19 infection cases in China with the prospect of movement restriction measures that will slow demand by the world’s largest oil importer.
On Sunday, a total of 691 Covid-19 cases were reported in China, up 547 from the previous day with the highest domestic spread rate since May 23.
In addition, investors are monitoring the development of the Nord Stream 1 pipeline issue linking Europe and Russia.
Being the largest gas pipeline carrying Russian natural gas to Germany, annual maintenance work began on July 11 and reportedly took up to 10 days.
The closure of the pipeline is feared to last longer due to tensions sparked by the Russian-Ukrainian war.
The loss of gas resources will have a major impact on Germany as the world's fourth largest economy and will further increase the risk of a global recession.
