WorldGold prices jump $ 20 as the US dollar pulls back

Gold prices jump $ 20 as the US dollar pulls back

AA / Istanbul

Gold contracts jumped about $ 20 as the US currency retreated as investors rushed into safe-haven stocks spurred on concerns over the novel variant of the coronavirus.

As of 9:12 a.m. GMT, gold prices rose in spot transactions 0.85%, or $ 15.19, to $ 1,804 an ounce.

US gold futures also jumped 1.1%, or $ 19.7, to $ 1,804 an ounce.

Investors have rushed to acquire gold which is a safe haven, after testing for infections with a new variant of the coronavirus in Africa, which health experts say is more lethal than its predecessors and is believed to be more lethal than its predecessors. able to resist vaccines.

Many countries around the world have rushed to impose restrictions, especially on travel from Africa, which has led to a decline in high-risk financial investments such as equity markets.

The precious metal, which does not generate a return, is one of the best safe havens, and investors turn to it in times of crisis and to guard against inflation risks.

The attractiveness of gold was supported by the decline of the dollar, after the discovery of the new variant of the coronavirus, B1529.1, which reduced the probabilities of an acceleration of the decisions of the US Federal Reserve (Central Bank), in favor of a tightening of monetary policy.

The dollar index, which measures the performance of the greenback against six major competing currencies, fell 0.5% to 96.39 points.

The decline of the dollar reduces the cost of acquiring gold for holders of other currencies.

However, gold still remains below its closing level last week of around 2.5%, which is the precious metal’s worst weekly performance, since mid-August.

Gold prices were negatively affected last week with rising bets on accelerating the process of reducing monetary stimulus to end earlier than mid-2022 by the US Federal Reserve accelerating, which should trigger an increase in interest rates, in the face of inflationary pressures.

Inflation in the United States rose 6.2% last October, the fastest increase in 31 years.

The employment figures in the United States also showed, on Thursday, that new jobless claims fell to their lowest level in 52 years last week, which augurs well for a good recovery in the labor market. local work. This had favored forecasts of a possible acceleration in the tightening of monetary policy across the Atlantic.

* Translated from Arabic by Mounir Bennour.

. . (HAS), ..