Gold prices start the week higher
Gold prices rose to a 5-month high as the dollar eased slightly after the number of cities in China where coronavirus cases eased. While gold prices passed the critical threshold of $1,800 per ounce in the spot market, a record was recorded on the gold gram side at TL 1,084.
The gold market was supported by the positive news from China on the first day of the new week. Chinese authorities have eased Covid-19 restrictions in Shanghai and Hangzhou, speeding up the process of reopening the economy.
China has also removed the requirement for PCR testing at the entrance to outdoor public areas, such as parks and the use of public transportation in the financial center of Shanghai, starting today.
UNDER RALLY CHINA
The easing of epidemic measures in China supported gold on expectations that global economic growth and demand for raw materials would improve. Although there was a downward movement in the dollar after the news, the ounce of gold in the spot market entered the new week with increases.
On the other hand, bond yields closed prices sharply lower on Friday, as the US Federal Reserve lowered expectations that it would be less aggressive in its policy.
dollar down
Despite missing out on a stronger-than-expected rise in US non-farm payrolls, the dollar failed to gain value today, hovering near a five-month bottom. In China, expectations that epidemic measures will be eased and the economy will pick up momentum increased risk appetite.
With the effect of these events, the dollar index fell 0.18 percent to 104.28, the lowest level since June 28. The index fell 1.4 percent last week.
Investors have long avoided non-interest-bearing gold, turning to the dollar as a safe haven against financial risks. However, this recent drop in the dollar caused the $1800 level in gold prices to be broken.
THE LATEST SITUATION IN THE GOLD MARKET
The price of an ounce of gold in the spot market rose 0.57 percent on the first trading day of the week, reaching the level of $1,808. The precious metal fell to the $1797 level after the spot market.
The gram of gold rose to 1084 TL levels in the morning hours and then traded at 1077 TL. In the morning, quarter gold was traded with a buy price of TL 1,760 and an ask price of TL 1,788, while Cumhuriyet gold was traded with a buy price of TL 7,184 and an ask price of of 7 thousand 292 TL.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
