Fundamental Comment

Gold hits its highest level since 2011 on weak dollar

Gold hits its highest level since 2011 on weak dollar

Gold prices climbed to their highest level since 2011, in light of the continuing factors that increased the demand for safe havens in the financial markets, foremost among which is the decline in the levels of the US dollar against major currencies.

The intraday gold prices recorded the highest level since September 2011 at $1865.75 an after it opened trading today at the level of $1840.76 per ounce, recording four consecutive sessions of gains.

Meanwhile, the US dollar is suffering from a decline against the major currencies, as it recorded its lowest levels in 4 months with continued confusion and lack of clarity in the performance of the American economy, which received a strong blow from the Corona pandemic.

The dollar index, which measures the performance of the federal currency against a basket of major currencies, was able to rise today after three consecutive sessions of decline to trade at 95.37, while it opened today's trading at the level of 95.07.

Investors are continuing to seek safety as the number of infections and deaths in the United States continued to rise, while Congress is struggling to agree a new stimulus bill after the end of the current draft at the end of the month.

On the other hand, the continuing turmoil in US-China relations may also be supportive of gold. The standoff witnessed the worst this week after the US Justice Department accused China on Tuesday of sponsoring infiltrators targeting the Covid-19 vaccine development lab on Tuesday.

Later in the day, the U.S. will release existing home sales for June, as well as the EIA weekly US crude stocks report.

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