Gold prices rise on the weakening dollar

gold price showed the strongest weekly rise in 4 months as the weaker dollar and demand for gold before 2020 providing support for the price.

February futures for gold on SOMEKH grew by 3.7 per dollar, or 0.24% to 1518,10 dollars per ounce. Meanwhile, March silver futures fell by 4.7 cents, or 0.26% to 17,943 USD per ounce later the day after finished the session at highest since November 4.

this week gold showed the strongest weekly growth since the beginning of August. Silver also showed the best performance since August — quotes has grown by about 4%.

Partly to the growth in gold prices was good news on the negotiation process, the US and China trade deal with a partial solution to controversial issues. This is a positive signal for prices, since China is the largest buyer of precious metals in the world.

the weaker dollar also boosted gold prices. The ICE dollar index on Friday fell by 0.4%, and the results of the last five working days — was 0.6%. The weakening of the dollar stimulates growth in demand for gold as prices for the metal are formed in us currency. With the weakening of the dollar, gold becomes cheaper for holders of other currencies.