The rise of the dollar undermines the attractiveness of gold


Gold prices continued their decline, losing more than 1 percent, as the number of Americans filing new applications for unemployment benefits fell last week, indicating an improvement in the labor market and strengthening the dollar.
By 1234 GMT, the spot price of gold was down 1.2 percent to $ 1884.71 an ounce.
And US gold futures fell 0.9 percent, to $ 1893.30.
“While prices will remain under the influence of higher inflation in the near term, gold is expected to decline over the next six to 12 months, anticipating statements from the Federal Reserve,” UBS analyst Giovanni Stanovo told Reuters. The United States announced a reduction in stimulus.
The dollar index rose 0.3 percent, against rival currencies, which undermines the attractiveness of gold to holders of other currencies.
In other precious metals, silver fell 2.4 percent to $27.53 an ounce, palladium fell 2.1 percent to $2797.97, while platinum fell 1.5 percent to $1171.55 an ounce.
Investors are betting that the dollar will fall as the world recovers from the Covid-19 pandemic, but they are finally worried about whether the sudden strong economic recovery in the United States poses a threat to the assumption that interest rates will remain low for a long time.
And the dollar rose against the euro 0.2 percent, to 1.2187 dollars, and increased against the Australian and New Zealand dollars, and rose against the Japanese yen 0.2 percent to 109.78 yen.
And the dollar index, which measures the performance of the US currency against a basket of six currencies, rose to 90.112. And it received strong support around the level of 89.946 in recent sessions after falling by 2 percent, in April and 1.6 percent, another in May.
And the pound rose 0.1 percent, against the dollar yesterday, to $ 1.4180, with investors worried a little about whether the spread of a new strain of the virus in Britain could delay plans to reopen the economy.
In addition, cryptocurrencies gained with an advance in the latest trading, as Bitcoin rose to $39.32 thousand, and Ethereum rose 6 percent, to $2879.


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