A decline in the US dollar index, which measures the US currency’s performance against a basket of six major foreign currencies, contributed to the rise in gold prices during today’s trade, in light of the inverse relationship between the two. The weakness of the US dollar increases the attractiveness of commodities denominated in it, especially gold, which lowers the price for its holders.
In this case, the US dollar index decreased by 0.18% and settled near 105.448 points, affected by the testimony given by the US Federal Reserve Governor Jerome Powell in the House of Representatives on Wednesday. The Fed’s decision to raise interest rates will depend on upcoming jobs and inflation data. He said he has yet to make a rate decision, which would mean raising interest rates by around 50 basis points at the next March meeting. Pricing on the first day of Powell’s testimony before the Senate became uncertain, which negatively affected the dollar’s movements and contributed to the rise in gold prices
Also, markets are closely awaiting the release of US employment data tomorrow, Friday, which will strongly influence the upcoming US Federal Reserve decisions on interest rate hikes, especially after the US Federal Reserve reports. Governor Jerome Powell will monitor upcoming economic data on Wednesday, followed by market data. Work ahead of making monetary policy decisions and determine the next interest rate hike, which will have a clear impact on gold’s movements. and the US dollar.
Spot contracts posted a 0.39% recovery to $20.10 an ounce, and prices rose 0.19% to $941.96 an ounce, while prices fell 0.81% to $1,365.92