GOLD PRICES DECREASED A LITTLE TO THE $ 1820.00 LEVEL DURING THE TEMPORARY STRENGTHENING OF THE US DOLLAR CURRENCY AFTER PROMISING ECONOMIC DATA

24.11.2020
Market News

24th Nov. - The price of gold has declined a few percent over the past few days following the current strengthening of the US Dollar. The price of gold recorded a decline to $ 1820.00 per ounce from $ 1965.00 per ounce in early November 2020.

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The 1.64% fall was due to the strengthening of the US Dollar after HIS Markit data released yesterday showed a positive increase.

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The data gives an indication that the private business sector in the United States November 2020 is growing rapidly.

 

Meanwhile, Manufacturing PMI and Services PMI data increased by 56.7 and 57.7, exceeding what analysts expected. The US Dollar Index (DXY) also recorded a positive increase.

Apart from the economic data released yesterday to help strengthen the US Dollar, news about the Covid-19 vaccine by AstraZeneca claiming that the vaccine they produce is better and more effective in fighting Covid-19, thus triggering a "risk-on" situation reflect to the US Dollar temporarily strengthen.

 

AHMAD FAIZUDDIN BIN RAZALI

CHIEF ANALYST OF CDG GLOBAL