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Gold’s performance fluctuated in the past weeks, With the decline in spot prices, futures contracts rose . This comes after the yellow metal recorded its largest gain in more than a month yesterday, coinciding with the rise of the US dollar. And amid renewed concerns about the economic growth of the US economy with the tightening of monetary policies.
With the imprisoning of the report presented by the General Division of Gold and Jewelery in the General Federation of Chambers of Commerce headed by Engineer Hani Milad Gayed, gold is heading towards achieving its first weekly gains. in six weeks ago, Today, the dollar index fell from a record high on July 14, while fears of a severe recession are growing, As the data showed that unemployment benefits rose to the highest level in 8 months, The prospects for industrial companies in Philadelphia also declined due to business conditions. Economic indicators showed early signs of an economic downturn.
John Finney says, Director of Business Development at Guardian Gold Australia: “We are finally starting to see some weakness in the US dollar index, Gold bounced off the oversold level. It’s above $1,700 at the moment.”
And now he expected gold to repeat the same journey of the rise of the US dollar, Investors are looking for a real and reliable hedge against inflation.
“Investors will be watching closely the Federal Reserve’s July 26-27 meeting for clues on the direction of its monetary policy,” he added.
raise European Central Bank key interest rate of 50 basis points, This is the first increase in 11 years. To counter the inflationary wave in European markets.