Gold settles near lowest this year as dollar approaches 22-month high

2019-04-24 09:31:34 GMT (
Gold settles near lowest this year as dollar approaches 22-month high

Gold futures fluctuated lower in a narrow range during the Asian session, to witness its stabilization near the lowest level in four months, amid the rise of the dollar index, stabilizing near the highest in twenty-two months according to the inverse relationship between them on the threshold of economic data expected today, Wednesday, by the Chinese economy, the world's largest consumer of metals, and amid a lack of economic data from the US economy.


As of 03:08 GMT, gold futures (June 15th delivery) fell 0.22% to currently trade at $1,271.50 per ounce, compared to the opening at $1,274.40 an ounce, while the US dollar index rose 0.08% to 97.67, compared to the opening at 97.60.


Investors are now looking for the Chinese economy, the world's second-largest economy and the second-largest industrial nation after the United States to unveil March's leading index reading, this comes hours after the People's Bank of China (CBB) That it may offer to stop the mandatory reserve reductions for the Chinese banks, explaining that the data of the first quarter support doing so and will re-evaluate the economic conditions.


On the other hand, experts at Standard Chartered Bank expect gold prices to rise again to last year's peak of $1,365 an ounce, as prices nearing the peak and falling to its lowest level this year, amid speculation that one of the main assumptions that the price recovery may support the Fed's adherence to the patience policy and the suspension of monetary tightening plans and interest rates.


According to experts, the assumption is based on the Federal Reserve's preparation for a possible recession by 2021, which could support the performance of gold as a safe haven, as they point to a surge in global central bank purchases and recent high demand for gold by China and India, by which supports the price cycle. Accordingly, they expect prices to rise to $1,365 an ounce and that the average price next year would be $1,375 an ounce.

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