Gold prices have skyrocketed again: the main factors behind the rise in prices
6 February 17:04
Gold prices rose on Friday, February 6, rebounding after a sharp sell-off in the previous session, as global stocks fell and tensions between the US and Iran remained high.
This was reported by "Komersant Ukrainian" with reference to Reuters.
Meanwhile, CME Group raised margin requirements for precious metals to protect against risk. The spot price of gold rose 1.99% to $4,864.77 per troy ounce by 12:33 p.m. Kyiv time.
“I predict small investments in (gold) as a safe haven asset, but it is worth considering that there is still some caution after last Friday’s sell-off,” said Calvin Wong of OANDA. “Tensions between Iran and the US continue to be frightening.”
“In the very short term, gold prices will be volatile, moving between $5,169, which is a key short-term resistance level, and $4,400, which is a key near-term support level.”
Iran and the US began talks today in Oman on Tehran’s nuclear program.
Silver added 3.55% in value to $73.76 per ounce, falling below $65 per ounce during the session.
Since the beginning of the week, gold has fallen 0.1% and silver more than 12% after falling 18% last week, which marked the sharpest decline in the precious metal since 2011. The dollar is trading near a two-week high after US President Donald Trump nominated Kevin Warsh as Fed chairman last week. Meanwhile, the CME Group raised margin requirements for gold and silver futures contracts on Thursday for the third time in two weeks. The exchange operator is thus trying to reduce the risks arising from “increased volatility” in the precious metals market.
The release of US labor statistics for January has been postponed from Friday to February 11 due to the four-day partial shutdown, which has now ended. Palladium rose 3.04% to $1,665.95 per ounce, while platinum rose 0.39% to $1,994.7. However, both metals showed a decline for the week as a whole.
