FX.co ★ Gold demonstrates a steady increase amid a weakening dollar

Gold increased steadily this morning. In particular, when the US dollar declined amid optimism over the Brexit trade deal.

Therefore, at the opening of trading in the New York Mercantile Exchange, the cost of February gold futures rose by 0.08% ($ 1.55) and reached $ 1879.65 per troy ounce, while March silver futures rose 0.11% and traded at $ 25.95 an ounce. March copper futures, meanwhile, rose 0.09% and reached $ 3.5490 a pound.

As for the USD Index, which shows the ratio of the US dollar against other world currencies, price sank by 0.23%, reaching a value of $ 90.132.

Clearly, demand for the dollar declined amid optimism on the Brexit trade deal. Yesterday night, it was reported that negotiations between the UK and the EU have entered the final stage, therefore, a deal may be concluded soon. Many media outlets suggested that the parties could sign an agreement as early as Thursday morning.

In this regard, gold started to climb up in the market, resuming its sharp growth earlier, when traders resorted to the asset during the coronavirus crisis.

But since COVID-19 incidence persists, traders should continue to monitor the situation, especially in the United States and Europe. According to the World Health Organization (WHO), the total number of infections in the world has reached 76.8 million, where the US accounts for almost 18 million, and India - another 10 million. In many European countries, the daily growth rate remains close to the peak record. Therefore, the only hope for investors is that the developed COVID-19 vaccines will be able to stop the pandemic and support global economic recovery.

In another note, trading volume will be reduced on Thursday and Friday due to the Christmas holidays. So, on December 24, many markets will close earlier than usual, and on Friday, trading in the US and Europe, and on some Asian exchanges will not be held.