Gold Price Rises as US Dollar Weakens

Gold Price Rises as US Dollar Weakens
The price of gold futures for June rose by $15.75.

Gold prices rose nearly 1% on Wednesday evening in major global exchanges amid a weakening US dollar, the Russia-based PRIME Business News Agency reported on Wednesday.

As of 18.28 Moscow time, the price of June gold futures on the New York’s COMEX rose by 0.9%, or $15.75, to $1,794.2 per troy ounce (31.1 grams). Silver futures for May gained 2.7% and traded at $26.532 an ounce (around 28 grams).

One of the main reasons for the rise in gold prices is the weakening US dollar, which makes gold more profitable for holders of other foreign currencies, PRIME agency noted, adding that the dollar index (the dollar exchange rate against a basket of currencies of six countries – the main trading partners of the United States) has been falling for the third week in a row. The index currently stands at 91.12 points, although at the beginning of the month it exceeded 93 points.

At the same time, the markets are dominated by concerns about the global coronavirus situation, according the report. A new wave of COVID-19 has hit a number of countries, including India and Japan, increasing risks for the global economic recovery. This, in turn, has increased the demand for gold, which is considered as a safe haven asset.

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