Why did the price of gold fall to its lowest level in a week?

Gold prices witnessed a decline to their lowest levels in almost a week, as international gold prices fell to approach levels of 1800 dollars per ounce, and the price in Egypt fell to levels in a week at 789 pounds per gram of 21 karat, so what caused the decline in the price of gold.

Alaa Rashid, an analyst in the gold market, said that investors turned to the dollar amid fears that the spread of the mutated Delta strain of the Corna virus, which may delay the global economic recovery, expected the return and rebound of gold to rise again in the Egyptian and global market.

In exclusive statements, he indicated that gold in spot transactions fell 0.4% to $ 1804.60 an ounce, after it fell to its lowest level since July 13 at $ 1801.46, and US gold futures fell 0.6 percent to $ 1804.10.

He explained that “the strength of the dollar limits the upside for gold, and it is still somewhat of a major adverse factor, and there are concerns arising from the delta strain and its impact on global economic growth. So, the primary safe haven flows also go to the dollar and bonds.”

The dollar index rose 0.2 percent to its highest level in more than three months against other major currencies, making gold more expensive for holders of other currencies.

Many countries, particularly in Asia, are struggling to rein in the highly contagious delta strain of the coronavirus and have been forced to take lockdown measures.

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As for other precious metals, silver fell 1.1 percent to $ 25.37 an ounce, palladium rose 0.3 percent to $ 2638.44, and platinum fell 0.8 percent to $ 1093.40.


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