The price of gold on the rise once more

0

On 15 April 2021 the spot gold price (XAU) expressed in US dollars (USD) per troy ounce increased and thus continued its price increase from the previous day. According to economic correspondents, one of the main factors causing strengthening price of gold is the weakening of the exchange rate of the USD on the international foreign exchange – Forex market.

On April 15 at 8:37 am CET, the US Dollar Currency Index (DXY), which compares the USD with six other major world currencies, has seen the USD at a price level of 91.66 with a daily decline of -0.03%. In an annual comparison, the USD exchange value – according to this DXY index – recorded an overall decrease of -7.33% over the last 52 weeks. Also, according to this index, the last time the USD was at a price level of more than 100 was almost one year ago, on 24 April 2020, when the USD reached 100.87.

Commodity market investors have reacted to this situation – with regard to the current position of the USD on the Forex market – by increasing interest in gold. According to available reports, primarily investors from Asia, and especially from China and India showed an increased interest. On 15 April at 8:30 am CET the price of gold on the Commodities Exchange Center (COMEX) commodity market was US$ 1,743.80 per troy ounce, with daily growth of +0.43%.

According to a technical analysis made by leading global analysts, the current price level of investment gold is close, in the annual comparison, to its previous prices, but still shows an annual loss of -0.28% in the last 52 weeks. This loss, in comparison with the price since the beginning of 2021, is already steeper by -8.74%. However, according to investment companies’ financial strategists, investment gold should maintain its price of around US$ 1,750. This is based on declining US yields and insignificant number of new jobs in the US, says Bob Haberkorn, senior RJO Futures strategist and further states that gold remains a key investment instrument on the commodity market.