Gold rises as demand for safe havens

Gold prices rose today, as concerns about the spread of a new strain of the Corona virus, which were recently detected, increased the demand for the metal, which represents a safe haven, yet it is heading towards recording a weekly decline due to increasing bets that the US Federal Reserve may shift to a greater tightening.

Spot gold rose 0.5% to $1,797.46 an ounce by 04:45 GMT. And US gold futures rose 0.8 percent to $ 1797.70.

And the new strain that scientists have monitored in South Africa may be able to evade the immune response and prompted Britain to quickly impose restrictions on travel to and from this country. Also helping gold to rise, the dollar index fell 0.2 percent from the 16-month peak recorded earlier in the week, while the benchmark US 10-year Treasury bond yields also fell.

A lower dollar reduces the cost of gold for buyers of holders of other currencies, while lower bond yields reduce the opportunity cost of holding the yellow metal, which does not generate returns. But gold has lost 2.6 percent since the beginning of the week, and is heading for its worst weekly performance since August 6, due to growing expectations that the Federal Reserve will reduce asset purchases and raise interest rates at a faster pace.

As for other precious metals, silver fell in spot transactions 0.1 percent to $23.56 an ounce. Platinum fell 1.2 percent to $983.53, while palladium rose 0.9 percent to $1,877.1 : Source


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