XAUUSD - Slight increase at the beginning of the new week
Gold prices increased because the USD reversed sharply at the beginning of this morning's session. The Dolla-Index – which measures the strength of the USD in a basket of 6 major currencies, plummeted by nearly 0.4% compared to the previous session, to 103.220.
The dollar depreciated, helping to lower gold deposit and transaction costs, so investors boosted buying precious metals to make a profit. The world's largest gold trust fund (SPDR) since August 28, has been a net buy for 4 sessions and only 1 session has no net buying or selling. This shows that gold is still an investment choice channel as the market reinforces expectations that the Fed will keep interest rates unchanged from now until the end of the year.
Therefore, the dollar has turned to decline. Experts said, however, that gold price is unlikely to increase strongly when a series of economic information such as GDP growth, purchasing managers' index, employment is expected. August was positive in the two largest and second largest economies in the world, the US and China.
The dollar depreciated, helping to lower gold deposit and transaction costs, so investors boosted buying precious metals to make a profit. The world's largest gold trust fund (SPDR) since August 28, has been a net buy for 4 sessions and only 1 session has no net buying or selling. This shows that gold is still an investment choice channel as the market reinforces expectations that the Fed will keep interest rates unchanged from now until the end of the year.
Therefore, the dollar has turned to decline. Experts said, however, that gold price is unlikely to increase strongly when a series of economic information such as GDP growth, purchasing managers' index, employment is expected. August was positive in the two largest and second largest economies in the world, the US and China.
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