Gold rises for second day in a row, shrugs off dollar strength

Gold prices rose in the European market on Thursday, continuing its gains for the second day in a row, as recovery process from the lowest level in four months continues, resisting the broad rise of the US dollar against a basket of global currencies.

As of 10:40 GMT, Gold rose by 0.15% to trade at $1,277.55 per ounce from the opening level of $1,275.79 with a high of $1,278.52 and a low of $1,273.39.

Gold ended yesterday trading rising by 0.25%, in its first daily gain in 3 days, within recovery processes from a 4-month low of $1,266.29 an ounce recorded in the day before.

Gold recovery is being supported by the relative improvement in safe haven metal purchases, with renewed concerns over the global economy after weak data on Germany's business climate and after South Korea's economy grew less-than-expected in the first quarter.

The dollar index rose more than 0.1% on Thursday, extending its gains for the third day in a row, approaching a 23-month high of 97.97 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 1.76 metric tons yesterday, to fall to 747.87 metric tons, the lowest level since 19th of October, 2018.