Gold rises to its highest level in more than a week as the dollar declines

Gold prices rose on Monday to their highest level in more than a week, benefiting from a weaker dollar, although the rise in US Treasury yields limited the gains of the dollar-denominated yellow metal.
And gold rose in spot transactions 0.6% to $ 1856.41 an ounce, after prices reached the highest level since May 12, recording $ 1858.21 earlier in the session, and US gold futures rose 0.7% to $ 1855.60 an ounce.

“It has not yet been judged whether gold has weathered the difficulties in the medium term or is rising based solely on the continued decline in the US dollar,” said Jeffrey Haley, an analyst at OANDA.

The dollar index fell as investors continued to sell the US currency and their bets on the dollar fell further due to higher interest rates, while they hoped that easing the closure measures in China could help the growth of the global economy and export-linked currencies.

The weakness of the dollar makes gold more attractive to buyers than holders of other currencies, and the yellow metal loses its attractiveness to investors when US interest rates rise because it does not generate returns, but it is considered a safe haven during economic crises.

Among other precious metals, silver rose 1.1% to $21.98 an ounce, platinum rose 1% to $965.40 and palladium rose 2.6% to $201580.

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