Gold heads to rebound from 4-month low as robust dollar curbs it

Gold prices rose in the European market on today's trading, amid attempts to recover from the four-month low recorded earlier yesterday, while those attempts are being restrained by the raise of the dollar against a basket of global currencies.

As of 09:45 GMT, Gold rose by 0.1% to trade at $1,273.60 per ounce from the opening level of $1,272.19 with a high of $1,273.92 and a low of $1,268.77.

Gold ended yesterday trading falling by 0.2%, in its second consecutive daily loss, recording a 4-month low of $1,266.29 an ounce as dollar rose.

In contrast to the impact of the US dollar rally, gold prices have been subjected to additional negative pressure, which is the weakness in demand for safe investment assets, as investors' risk appetite improved and their focus shifted to buying high-yielding assets stocks and international bonds.

The dollar index rose more than 0.1% on Wednesday, extending its gains for a second day in a row, approaching the seven-week high of 97.45 points, reflecting the continued rise of the US dollar against a basket of global currencies.

The rise in the US dollar purchases continue to be the best current investment in the foreign exchange market, with most major and minor currencies facing negative pressure, which may force most central banks to expand flexible monetary policies.

Gold holdings at SPDR Gold Trust, The world's largest gold-backed index, fell by 2.05 metric tons yesterday, to fall to 749.63 metric tons, the lowest level since 22nd of October, 2018.