Gold prices in the European market fell on Thursday to continue their losses for the second consecutive day, as the US dollar climbed off a basket of of global currencies and the continued weakening of investment demand for safe havens despite mounting global trade tensions.
Gold prices fell by more than 0.1% until 09:50 GMT to be traded at the $1323.10 level of the $1324.30 opening level, registering the highest level of $1327.91, and the lowest level of $1322.33.
Yesterday's gold prices lost 0.1%, in the second loss in three days, by the recovery of US currency levels versus a basket of major and secondary currencies.
The dollar index on Thursday rose more than 0.1 percent, continuing its ascent for the second consecutive day, reversing the continuing recovery of US currency levels, which is pushing the bulk of prices of metals and dollar-denominated commodities.
The US currency is recovering despite mounting trade tensions between the United States and China, with investors concentrating during that period on the prospects for the Federal Reserve Board to raise interest rates more than once this year.
So far, many traders are of the view that the Federal Reserve will continue to raise interest rates gradually, and the prospects for raising prices three times this year, and the beginning of the monetary policy meeting next week, are still in place.
Gold holdings of the SPDR Gold Trust, the largest global indicator fund supported by gold, remained yesterday with no significant change for the fifth consecutive day at a total of 833.73 metric tonnes.