Gold prices on the European market jumped Friday to the highest level in four weeks, with the demand for safe havens being accelerated amid mounting concerns over global trade tensions, between the United States and China, and the price trend to achieve the first weekly gain in the last five weeks, with The prospects for raising US interest rates have been reduced four times this year.
Gold prices rose by more than 0.9 percent to 08:50 GMT to be traded at the $1341.10 level of the 1328.92 from the opening level, registering the highest $1343.23 level since 20 February February, and the lowest level of $1328.92.
The gold price fell yesterday by 0.3 percent, with the US dollar falling, and in a correction process after the previous day's prices gained the largest daily gain in percentage terms since 17 May may 2017.
Trade tensions between the United States and China erupted after US president Donald Trump announced a customs levy on Chinese imports worth up to 60 billion dollars, Beijing has responded by revealing plans to levy tariffs on US imports worth up to 3 billion dollars.
Those developments are tantamount to declaring a comprehensive trade war between the first and second largest economies in the world, which is expected to have a negative impact on the movement of trade the global economy, which is now reflected in investor aversion to risk, and the acceleration of sales in most stock markets and global bonds .
Over the course of the current week, gold prices have risen by about 2.1 percent, with the first weekly gain in the last five weeks., with the acceleration of investment demand for safe havens, and with the support of a decline in the likelihood of raising US interest rates four times this year.
This week, the Federal Reserve Council, in its first meeting under the leadership of Jerome Powell, raised the interest rates by 25 basis points to a scale of 1.75 percent, noting that the country's economic growth prospects have been boosted in the past few months.
The Federal Reserve confirmed during the monetary policy statement that the pace of inflation is expected to move upwards eventually, after a year from being below target at the level of 2%, and noted that the economy has gained strong momentum in the recent period.
The Board highlighted the growing confidence that tax cuts and government spending would boost the country's economic growth and support the recovery of inflation, stimulating further tightening of monetary policy in the future.
According to the US central bank, interest rates are likely to be raised three times during 2018, three times during 2019, and a glimpse of the prospects for acceleration of the lifting process during 2019 and 2020 in the light of improved economic prospects.
The US dollar fell to the lowest level in four weeks against a basket of global currencies, with the prospects for the Federal Reserve to raise interest rates four times during the year.
Gold holdings in the SPDR Gold Trust, the largest global indicator funds supported by gold, remained yesterday without any significant change for the second straight day at a total of 850.54 tons.