Gold rebounds from Six-Week-Low, Copper increased on Chinese Measures

Gold rebounds from Six-Week-Low, Copper increased on Chinese Measures

Gold rebounds from Six-Week-Low, Copper increased on Chinese Measures

The price of gold recovered sharply from the lowest level of six weeks on Tuesday because the energy crisis that worsened in Europe raised safe-haven demand, while copper extended the benefits of more expectations of Chinese stimulus measures.

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The demand for gold increased after Russia closed a large pipeline to Europe, putting the continent at risk of a major energy crisis. Euro dropped to the lowest position of 20 years this week, given that the crisis is expected to greatly have an impact on economic growth in the Eurozone. The focus is now on the European Central Bank meeting this weekend, where banks are widely expected to start raising interest rates.

Prices of Spot Gold jumped 0.5% to $ 1,718.95 per ounce, while gold futures were up 0.5% to $ 1,730. The two instruments recovered from a six-week-low hit earlier this month.

A rally in the Dollar index also seemed to have stopped on Tuesday, while traders are waiting for more details on the path of American monetary policy. But predictions of more interest rate hikes by the Federal Reserve made the dollar support around 20 years highest.

The increase in interest rates has greatly burdened the price of gold this year because traders found better results from the dollar and treasury. The Fed is also expected to maintain its rhythm of rates of rate hikes this month.

Other precious metals also increased abruptly on Tuesday. Silver added 2%, while platinum won 0.6%. Both metals recovered after a minimum of 15 months.

Among the industrial metals, the price of copper rose 0.2%, extending profits after the main importer of China marked an increase in stimulus steps to increase economic growth.

Copper Futures ending in December increased 0.2% to $ 3, 4665 per pound, after a jump of almost 2% on Monday.

Chinese government officials said on Monday that the country would likely increase the pace of stimulus steps in the third quarter after the economy almost did not develop in the second quarter.

The second largest world’s economy faced serious opposite attacks from COVID-19 restrictions and lockdowns imposed this year, as well as a potential energy crisis.

Gold rebounds from Six-Week-Low, Copper increased on Chinese Measures