Gold prices continued to go up in the first three sessions this week and set record levels thanks to the weakening of the dollar, the stock market, concerns about global economic prospects and buying activities of banks. center.
However, the price of this precious metal turned down in the last two sessions, mainly due to profit-taking activities of investors.
In the first trading session of the week (April 8), the world gold price increased by 1% and sometimes exceeded the 1,300 USD / ounce level when the USD slid down and the recent recovery of the stock market showed signs of stopping. .
Specialist Bart Melek, of TD Securities in Toronto, said the weakness of the dollar and the attractiveness of risky assets, along with China’s central bank buying of gold, were factors. pushing the price of gold to 1,300 USD / ounce.
Statistics show that by the end of March, China had increased its gold reserves by 0.6% to 60.62 million ounces.
By the trading session on April 9, gold price reached the highest level in more than a week, between the context of weak USD and stock indexes after the International Monetary Fund (IMF) lowered the forecast of global growth. this year.
IMF has lowered its forecast for global growth in 2019 from 3.5% to 3.3% and warned that growth may continue to fall if trade tension persists and if Britain leaves the EU without any deal.
In addition, the strengthening of central banks buying gold has "helped" this precious metal price. China, the world’s largest gold buyer, increased its gold reserves in March for the fourth consecutive month. Turkey also increased gold holdings.
Gold prices continued to set a record, when rising to the highest level in nearly two weeks in April 10 trading session, amid investor concerns about trade tensions and global economic prospects.
George Gero, Managing Director of RBC Wealth Management, said that geopolitical issues such as the UK leaving the European Union (EU), also known as Brexit, as well as US-China trade tensions and the uncertainties that the Eurozone is facing due to the slowdown in global trade are the supporting factors for gold prices.
However, in the trading session on April 11 at the New York Commodity Exchange, the price of gold futures had the strongest losing session in April, when it fell below 1,300 USD / ounce.
According to market analysts, profit-taking activities are also the reason that this precious metal price dropped after four previous gains.
In addition, the temporary easing of Brexit crisis has reduced the attractiveness of gold. The EU agreed to extend the Brexit time for another six months, setting a new deadline on October 31 to avoid a non-agreed Brexit scenario.
In the weekend session (April 12), gold prices continued to go down, ahead of the rise of the US stock market.
Specifically, the spot gold price decreased 0.1% to 1,290.71 USD / ounce, while the gold price in the US trading session closed at 1,295.2 USD / ounce.
Traders said the US dollar index fell 0.2% against a basket of currencies and is heading towards the first week of decline in four weeks helping to keep the gold price down.
Capital Economics analysts said that the prices of safe assets like gold will soon be pushed up, amid strong demand for investment in gold, whereby gold prices can recover to $ 1,400 an ounce. at the end of 2019.
