Commodities

Gold scales two-week high as dollar dips

2022-05-23 13:01:19 GMT (Economies.com)

Gold prices rose in European trade on Monday for the fourth straight session, hitting two-week highs as dollar declines against major rivals. 

 

The precious metal is also supported by improving demand in China, the world's largest metals consumer as Covid 19 infections decline. 

 

Gold rose over 0.9% to $1,863.25 an ounce, a May 10 high, after closing up 0.3% on Friday, the third profit in a row.

 

Gold rose 1.9% last week, the first weekly profit in five weeks, and the largest since late February. 

 

The Dollar

 

The dollar index fell 0.6% on Monday to four-week lows at 102.12 against major rivals.

 

Investors now don't expect the greenback to achieve further gains as all Fed rate hikes are mostly priced in already.

 

Chinese Economy

 

China is starting to loosen up restrictions on movements in major cities as Covid 19 infections decline, while China's central bank took a bold move and cut interest rates to bolster economic activities.

 

Estimates

 

Analysts expect gold to hit $1,875 an ounce , and even head for $1900 if the dollar continues to decline.

 

The SPDR 

 

Gold holdings at the SPDR Gold Trust rose 7.25 tones on Friday to a total of 1,063 tones, the highest since May 11.

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