Gold prices surge on weakening dollar

12:00 | 17.03.2023
Gold prices surge on weakening dollar

Gold prices surge on weakening dollar

Gold prices are rising on Friday morning on weakening dollar, according to trading data.

This is while the prices may show a 3.6% growth by the end of the week, the highest since the beginning of the year due to market volatility.

Prices of April futures for gold at New York's Comex rose by $12.25 or 0.64% to $1,935.25 per troy ounce. The May futures for silver will increase by 2.05% to $22.137 per ounce. 
The dollar index (the rate against the currency basket of six countries - trade partners of the United States) dropped by 0.32% to 104.08 points.

At the same time, since the beginning of the week, gold has risen in price due to the status of a safe-haven asset amid market volatility. Stock markets showed a fall due to concerns about the banking sector, followed by oil and copper prices. Now the stock markets are rising, and oil and copper are rising in price, while the price of gold is supported on Friday by the currency factor.

Investors also continue to assess the prospects for the monetary policy of the US Federal Reserve System (FRS), as this affects the dollar, to which gold is sensitive. According to CME Group, 84.9% of analysts expect the rate increase in March at the pace of February - by 25 basis points, and 15.1% expect the rate to remain at the current 4.5-4.75% per annum. Traditionally, a more dovish policy is negative for the dollar, which supports gold.
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