Global gold prices rose again at the end of trading on Friday, destroying three consecutive months of gains in US dollars as oil prices plummeted amid rising fears of a new mutation in the corona virus detected in South Africa. .
At the close of trading on Friday, Brent crude for January delivery was down 11.6% at $ 9.53, up $ 72.72 a barrel, and the weekly loss was 7.8%.
US NYMEX crude for January delivery was down 13%, or $ 10.24, to $ 68.15 a barrel, down 10.2% in weekly trading. The US dollar was down 0.8% at 96.1 points from 96.87 points at the close of trading on Thursday.
On the other hand, gold futures for February delivery rose less than 0.4% to $ 7.1 an ounce, $ 1791.40 an ounce, while spot contracts for the yellow metal fell 0.04% to $ 1788.12 an ounce.
It is noteworthy that there is a direct link between the rise in oil prices and the strengthening of the dollar. On the other hand, there is an inverse relationship between gold and the dollar, as the price of gold is lower than that of the dollar and oil, respectively.
Taher Morsi, head of Bullion Egypt’s market research department, explains that demand for the world’s most important strategic commodity, oil, which is priced in dollars, will continue to rise against the US dollar. Supports the strength of the currency to offset the negative impact of an increase in the money supply as a result of the policy of mitigation. List in the United States.
He pointed out that the daily high demand for oil in the post-epidemic phase, especially this year, has led to its continuation before the emergence of the tourism and tourism sector and the overall economic activity of the world and the new mutation. Demand for this specialty has grown significantly as a result of recent corporate scandals.
He believes the dollar is strengthening despite raising the US debt ceiling, with the Federal Reserve budget doubling in two years and continuing to pump cash into the economic stimulus program.
In turn, Orsex’s chief economist Assem Mansour explained: With the emergence of the new corona mutation, the situation for the dollar and oil may be negative amid expectations of a recession in the world economy. These closures will begin to take effect due to the spread of that mutation, which will accelerate the US Federal Reserve’s monetary policy austerity, raising interest rates one or two times by 2022 next year.
“Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator.”
