Gold prices on the European market surged Friday to resume their temporarily suspended ascent on Monday, about to achieve the first weekly gain in a month, based on the decline of the US dollar against a basket of global currencies, affected by the statement and outlook of the Federal Reserve during 2018, also affected by Possible delays in the adoption of the law on tax reforms within Congress.
Gold rose by 0.2% until 09:05 GMT to deliberate at the $1256.26 level of the opening level of $1252.82, registering the highest level of $1257.77, and the lowest level of $1252.69.
Yesterday's gold prices ended by about 0.2%, in the first loss in three days, by making profit from the highest level in the week of $1259.07 for an earlier transaction.
Over the current week, gold prices have risen 0.6 percent, with the first weekly gain in a month, backed by a US dollar retreat against a basket of global currencies.
The US dollar index on Friday fell by more than 0.1 percent, in a way toward the first weekly loss in the last three weeks, with the sale of U.S. currency versus most of the world's currencies, especially after a less stringent statement of market outlook for the future of US monetary policy during the year 2018, in conjunction with renewed concerns about the delay in the passage of the tax reform law within Congress.
During this week's meeting, and in line with most forecasts of financial markets, the Federal Reserve Board raised interest rates by 25 basis points to the range of 1.5%, the third increase in U.S. interest rates during the current year, thus the US central has implemented the entire interest rate raising cycle In 2017 as previously announced.
The Monetary Policy Committee of the Federal Reserve said that raising interest rates to a range of 1.5 percent comes in the light of the country's growing economic activity at a strong rate and with new jobs rising at a strong pace.
In the latest economic forecast and after the emphasis on economic momentum during 2017, the Federal Reserve said it raised growth prospects in 2018 to 2.5% rising from 2.1 percent forecast in September September, unemployment is expected to drop to 3.9 percent next year compared with 4.1 percent in tour Previous projections.
As for the pace of inflation, the US central said it is expected to keep the pace below the target level at 2% for another new year, and it means the continued concern of US monetary policy makers about the country's weak inflation, which will hinder the acceleration of the rate of interest rates.
For the forecast of the interest-rate-raising cycle in 2018 and 2019, the previous forecast report remained unchanged on September last September, which referred to three increases each year until it reached the rate of 2.8% in the long term.
Gold holdings of the SPDR Gold Trust, the largest global indicator funds supported by gold, remained yesterday with no significant change at a total of 844.29 metric tonnes.