Gold resumes climb on weak dollar

Gold prices rose in the European market on Friday to resume its gains, which were temporarily halted yesterday in a correction from the highest level in a week, trading again above the levels of $ 1,500 per ounce, based on the decline of the US dollar against a basket of global currencies.

Gold prices rose during the European session today, to resume gains which were suspended yesterday on profit-taking from a 1-week, to climb again above the $1,500 barrier, as the US dollar fell against a basket of major currencies.

Gold rose by 0.6% to $1,503.17 an ounce, from the opening level of $1,493.99, with an intraday nadir of $1,490.80.

Gold closed lower by 0.7% yesterday, its first daily loss in the last 3 days, after it hit a 1-week high earlier.

Gold prices also fell due to a slowdown in haven demand, after positive news report about the US-China trade talks and hopes about a final Brexit deal.

The dollar index fell today by 0.1% against a basket of major currencies, to continue its slide for the third day to hit a 2-week low of 98.60 points, which favor most metals and commodities denominated in dollars.

This sharp downturn in dollar levels comes after reveal of the Federal Reserve minutes and major US inflation data which increased market bets on a US rate cut by 25 bp for the third time this year at the October 29-30 meeting.

Gold holdings at the SPDR Gold Trust, declined by 2.05 metric tons yesterday, its first daily decline since September 30th, with a total of 921.71 metric tons.