On Friday morning, the spot gold price rose for the second day in a row, after a decline that lasted for about a week, and it now records a price of 1925.36 dollars an ounce, while gold futures contracts for December delivery record 1949.05 dollars, and in the monthly term, we note that the prices of the precious metal are still near historically high levels.
Gold and US dollar traders continue to monitor predictions about upcoming Fed policy, and earlier in the week reports on the US economy from the Federal Reserve announced weak growth in the recent period, after examining the employment sector and inflation.
In other news talking about the BRICS group, Daniel McCarthy, a strategic analyst for Daily FX, says that the BRICS group is now working on establishing a common currency backed by gold, and that it will be a currency that is traded in commercial transactions between the group, and will be relied upon instead of the dollar.
Such steps have been taken by other countries trying to reduce their need for the dollar as a stock and cash reserve, and the recent rise in gold may be due to these measures that express the extent of the confidence of countries and investors in gold, and these trends were confirmed by Sergei Ryabkov, Deputy Minister of Foreign Affairs of Russia.
Ryabkov also pointed to Russia’s desire to weaken the dominance of the dollar and the crisis that some countries will fall into when their dollar stocks decrease, if Russia’s leadership of the BRICS group is achieved.
Over the years, gold has proven its value to countries, especially in light of the concern of some about the continued rise in US interest rates, and the impact of this on the possibility of a recession or economic recession. Susan Collins, President of the Federal Reserve in Boston, says that there are reasons to adhere to more hawkish policy.
However, Collins called on policymakers to take more patient and wise steps, as the Federal Reserve has now reached the peak of interest rates, but future policy will depend on the extent to which economic data changes, and she stressed that the country is coping well and flexible with unclear circumstances, and this view is reinforced by statements. A precedent for Federal Reserve Governor Jerome Powell when he indicated that he was ready to raise interest rates further if necessary.
