Gold prices on the European market surged on Monday to continue its gains for the second straight day, registering the highest level in five weeks, with a drop US dollar versus a basket of global currencies, in addition to the continued high demand for safe havens despite a decline in fears On trade tensions between the United States and China.
Gold prices rose by more than 0.1% to 10:40 GMT to be traded at the $1348.10 level of the 1347.09 from the opening level, registering the highest $1350.86 level since 19 February February, and the lowest level of $1343.48.
Gold prices on Friday rose 1.5 percent, due to the US dollar's fall, and the demand for safe havens has accelerated amid escalating trade tensions between the United States and China.
Over the past week, gold prices have risen 2.6 percent, the first weekly gain in the last five weeks and the largest weekly gain since April April 2016, by force of investment demand for metal as a safe haven, as well as a decline in the likelihood of raising US interest rates four times During the current year.
The dollar index on Monday slipped by about 0.4 percent, continuing its losses for the second consecutive day, registering the lowest level in six weeks 88.74 points, inverter the continuation the sale of the U.S. currency versus a basket of currencies, which is in favor of higher prices for metals and commodities denominated in dollars.
The continued sale of the US currency, after the prospects for the Federal Reserve to accelerate the tightening of monetary policy during the current year, and under the desire of the administration of President Donald Trump to weaken the local currency to support the global competitiveness of US companies and expand exports.
Concerns about trade tensions between the United States and China have subsided, especially after the Wall Street Journal reported that Washington and Beijing have secretly started negotiating to improve the entry of US companies into the Chinese market.
Treasury Secretary Stephen Menschin told Fox News that he was "cautiously optimistic" about the two major economic forces in the world reaching an agreement to avert the tariff crisis.