Gold achieves weekly gains exceeding 6%

Gold prices recorded a remarkable increase during Friday’s dealings, exceeding the barrier of $ 3,200 an ounce, supported by the decline in the US dollar and increasing fears of the global economy entering in a stagnation in the midst of the escalating war between the United States and China, which strengthened the demand for gold as a safe haven.

The price of gold in instant transactions jumped by 2% to 3235.89 dollars an ounce by 18:32 GMT, after a new record at 3245.28 dollars earlier in the session, achieving weekly gains exceeding 6%.

US gold futures increased by 2.1% upon settlement, to record $ 3244.6 an ounce, according to Reuters.

“In light of the chaos caused by the trade war launched by President Esmies Donald Trump, gold is a favorite safe haven Valdollar, the US Dollar is declining, and US Treasury bonds have lost a lot of its attractiveness, and the confidence in the United States as a commercial partner is eroding quickly,” said Nitish Shah, a Wisdomtree commodity expert, said.

This development comes after China announced the raising of customs duties on American imports to 125%, in a move that increases the complexity of the trade war between Beijing and Washington.

The dollar fell against a basket of major currencies, which made the gold -resistant gold more attractive to investors than other currencies.

Gold prices also benefited from several additional factors this year, the most prominent of which is the increase in central banks purchases, the expectations of the Federal Reserve reduced interest rates, as well as geopolitical disorders, and the high demand for gold -backed indicators.

In the same context, the data showed the decline in the price of producers in the United States by 0.4% during March in an unexpected decline, but estimates indicate that the new customs duties may lead to high inflation in the coming months.

Investors expect that the Federal Reserve will reduce interest rates by about 90 basis points by the end of the year, with a weighting that the first reduction will start during the next June meeting, which supports the rise in gold, which usually increases luster in periods of low interest and high political and economic tensions.

In terms of other precious metals, silver in instant transactions increased by 2.7% to $ 32.05 an ounce, while platinum increased by 0.2%, recording 939.80 dollars, and palladium increased by 0.6% to 913.65 dollars per ounce.