The gold prices have shown an increase on Wednesday due to increasing tensions in the Middle East. It prompts investors to buy a safe and precious metal. But, the gains were limited because of an increase in the U.S dollar’s price and potential progress in China-U.S trade negotiations. The gold rose 0.3% to 1,420.70 U.S dollars per ounce after hitting its lowest level since July 17, 2019, at 1,413.80 U.S dollars per ounce in the previous session. The price of gold settled in futures trading in the United States at 1420.80 U.S dollars an ounce. The market analyst at CMC Markets, Margaret Yang Yan said, “We have geopolitical tensions in Iran. We remain very cautious and suspicious regarding the U.S-China trade negotiations, which are expected to start on Monday due to many things hasn’t been resolved between the two countries”.
Yan added, “On the other hand, the dollar index is rising, which negatively affects the price of gold”. The dollar index measured the performance of the greenback against a basket of rival currencies. It empowered its gains to a 5-week high, increasing the cost of gold to holders of other currencies. It is noteworthy that silver rose 0.5% to 16.48 U.S dollars per ounce. Platinum also gained 0.6% to 859 U.S dollars per ounce, but palladium dropped 0.3% to 1,523 U.S dollars.
It is important that the Iraqi Trade Bank is lending to the Iraqi Ministry of Commerce and announced 1.4 trillion Iraqi dinars. The Bank said in a statement that the Iraqi Trade Bank will hold a press conference on Wednesday to announce the lending of 1.4 trillion Iraqi dinars to the Iraqi Ministry of Commerce/ General Grain Trade Company. It will be used for the purpose of paying farmers’ benefits for the year 2019. The new announcement will offer a significant amount of support to the government of Iraq.