Gold prices fell to the lowest level in 3 weeks today, Thursday, with the decline in the gravity of the yellow metal as a safe haven due to the strength of the dollar and the decline in trade tension at a time when investors are awaiting the report of non -agricultural jobs in the United States, which is issued this week.
Gold fell in instant transactions 2.57% to 3203.79 dollars an ounce in the latest transactions, its lowest level since April 10.
US gold futures fell 3.18% to $ 3213.5.
The dollar index, which measures the performance of the US currency against a basket of currencies, rose 0.48%, and this makes gold less attractive for other currencies.
Commercial agreements
US President Donald Trump said his administration may conclude trade agreements with India, South Korea and Japan as he seeks to turn his customs policy into trade agreements.
“The price of gold decreased with the decline in the fears of the trade war, but the market confidence is still shaken by the interaction of investors with news headlines daily,” said Elijah Spavak.
The gold, which is a way to hedge from political and financial turmoil, has touched on multiple records last April due to the increasing fog.
The demand for yellow is usually increased with the decrease in interest rates.
“Perhaps the forecast of the monetary policy of the Federal Reserve (the US Central Bank) is supported, but it may first need to calm the fears in April,” said Spagak.
The declaration of the American economy showed in the first quarter for the first time in 3 years, with companies rushing to import goods before the Trump administration imposed customs duties.
Clear indicators
Traders bet on Wednesday that the emergence of more clear indicators on the economy by June will push the US Central to resume reducing interest rates by a full percentage point by the end of 2025.
The market is now awaiting the non -agricultural job report that will be issued tomorrow, Friday, to obtain more indicators on the American monetary policy track.
The stock markets, bonds, foreign currencies and futures for commodity futures will be closed in China from May 1 to May 5th on the occasion of the Labor Day holiday.
As for other precious metals:
- Silver in instant transactions was 1.5% to $ 32.10 an ounce.
- Platinum fell 1% to 957.33 dollars.
- Palladium rose 0.2% to 939.74 dollars.
Oil
Oil prices fell to continue severe losses incurred by the last session, driven by signs that Saudi Arabia may produce more oil and the issuance of data that showed the contraction of the American economy in the first quarter.
Brent crude futures fell 0.82% to $ 59.95 a barrel, in the latest transactions, and US West Texas Intermediate crude futures decreased 1.92% to $ 57.09.
West Texas crude closed yesterday, Wednesday, at the lowest level since March 2021.
“In the near term, the lower resistance path is still a decline.”
She added: “The dual effect of the deterioration of demand and the increased imminent offer led to a pessimistic view of crude oil, as Brent crude appears vulnerable to a $ 55 for the barrel level.”
Sources said that Saudi officials informed allies and experts in the oil sector that the Kingdom does not want to support the oil market with more production discounts and that it is able to bear the low prices for a long time.
3 sources familiar with the OPEC Plus talks told Reuters earlier that many members would suggest the group to accelerate the increase in production in June for the second month in a row.
“Any surprise in the pace or scope of production adjustments may significantly affect the fluctuations in the upcoming sessions,” said Sashdiva.
Meanwhile, the American economy shrinkled in the first quarter of this year for the first time in 3 years amid a tremendous flow of imports at a time when companies were racing against time to avoid high costs caused by customs duties, and this highlighted the impact of the commercial policy that President Donald Trump pursues the economy.
Reuters opinion polls indicated that Trump’s customs duties have increased the possibility of the global economy slipping this year.
A poll conducted yesterday, Wednesday, showed that the demand expectations, which were prevalent in commercial differences, along with the OPEC Plus decision to increase the supply, will negatively affect oil prices this year.
The Kepler Analysis Company amended its forecast for the growth of global oil demand for 2025 to 640 thousand barrels per day from 800 thousand barrels per day, noting the escalation of trade tension between China and the United States and the weak demand from India.
A poll that included 40 economic and analysts in April expected that the average price of Brent crude would reach $ 68.98 a barrel in 2025, compared to March estimates of $ 72.94, and they expect the average US crude price to reach 65.08 dollars per barrel instead of $ 69.16 that was recorded last month.
The Energy Information Administration stated yesterday, Wednesday, that US crude oil stocks decreased unexpected by 2.7 million barrels last week due to the increase in export and the rise of refineries, compared to the expectations of analysts in a survey of 429 thousand barrels.
