Gold prices dropped during the Asian session today to prepare this fall for the third consecutive session and that with the continued reluctance of investors for precious commodities in light of the growing popularity of buying government bonds because they provide the benefit, unlike investing in gold.
At exactly at 03:20 GMT, the price of gold traded at $ 1182.40 an ounce after recording the highest at $ 1183.90 an ounce and the lowest level at $ 1181.00 an ounce comes after prices fell yesterday to its lowest level in three days at $ 1177.90 an ounce.
Financial markets have seen this week on the open sale of shares and government bonds and operations following the rise in crude oil prices to increase inflationary fears again, the sale of government bonds operations pays return them to rise to represent an attraction again in the financial markets.
Rising bond yields represents a negative pressure on gold, which is a safe haven since the fact that investing in gold does not offer any additional benefit such as bonds, and from this perspective it has the price of gold in the financial markets fell despite the decline in the US dollar levels.
On the other hand dollar index, which measures the dollar’s performance against a basket of six currencies for the second day in a row after scoring yesterday, its lowest level in 11 weeks, which is currently trading at the level of 94.82 after having opened the session today at the level of 94.65 and had recorded the lowest level of the day yesterday at 93.91.
This will increase the negative pressure on gold prices since the fact that the precious metal commodity priced in dollars, causing inverse relationship between them.