Gold is back in trend
Gold prices rose Friday and reached their first weekly rise in a month, supported by a weaker dollar, tensions in the Middle East and caution regarding trade negotiations between China and the United States.
Investors fear escalation in the Middle East
Gold rose by 0.3% to $ 1,503.36 per ounce, up 1% from the week's average. Gold futures in the US rose by 0.5% to $ 1,513.5 per ounce. A weaker US dollar gives gold upward space, although prices for this precious metal are still in the middle of the trading range at $ 1,500.
The US currency declined on Friday as central banks in Japan, the UK and Switzerland refrained from lowering rates.
EURUSD is currently trading upward at 1.1055. GBPUSD currently stands at 1, 2537.
Investors are waiting for any further changes in US-China trade negotiations as the October meeting approaches, which could be the next important driver for gold prices.
For the first time in almost two months, US and Chinese deputies at trade talks resumed their face-to-face dialogue, trying to lay the groundwork for high-level talks in early October.
Gold prices rose about 17% this year, mainly due to tensions in trade between the US and China, concerns about the prospects for global economic growth and the prospects for easing monetary policy by the central banks of key countries.
The US Federal Reserve cut interest rates for the second time this year on Wednesday to help support economic growth but gave mixed signals about a future cut, which is beneficial for gold.
In addition, the increase in investment in this precious metal is due to tensions in the Middle East, as the United States said on Thursday that it was creating a coalition to deter Iranian threats after an attack on oil facilities in Saudi Arabia last weekend.
Forex trading recommendations
EURUSD: Buy. Entry point– 1, 1053. Take profit – 1, 1071. Stop Loss – 1, 1022.
GBPUSD: Buy. Entry point – 1, 2556. Take profit – 1, 2597. Stop Loss – 1, 2485.
NZDUSD: Sell. Entry point – 0, 6300. Take profit – 0, 6285. Stop Loss – 0, 6325.