Subscribe to receive economic news
Gold prices fell during trading, Tuesday, to the worst daily decline since last March, while the dollar holds on to gains.
The spot price fell to 1935 dollars an ounce, retreating from last week’s record of $ 2,072.50 during Tuesday’s trading, and US gold futures fell 4.13% to $ 1,946.50 an ounce, and it can be said that there are many reasons that led to this strong collapse in prices. , Which are as follows:
First: Reaping strong profits from gold, as investors try to take advantage of the record highs achieved by gold in the last period, which reached their highest levels ever at $ 2072 an ounce, and therefore, the attempt to reap profits increased the pace of decline during trading.
Secondly: The anticipated US stimulus package, which led to investor optimism, especially after the release of press reports that showed the US Congress is heading to resume talks about the anticipated stimulus package to face the repercussions of the Corona virus on the economy.
Third: Increasing optimism in the markets after reaching an effective and safe vaccine for the Corona virus, especially after the Russian President, Vladimir Putin, announced that Russia had reached a Corona vaccine, thus becoming the first country in the world to officially announce the creation of a Corona vaccine.
Fourthly: President Trump’s announcement to reduce taxes on capital gains, which contributed to weakening the demand for the yellow metal as a safe haven.
Fifth: Economic data issued in China, Japan and other countries from rising hopes about economic recovery.
- The situation in Egypt