Rising gold prices as the dollar depreciated in world markets

The dollar index has fallen one percent this week, Reuters reported. The global ounce price is inversely related to the dollar. When the dollar index falls, the world price of gold rises.

The reason for the rise in the price of gold in the face of the devaluation of the dollar is that the fall in the price of the dollar makes the purchase of this precious metal cheaper for the owners of other currencies, so the price goes up as demand in the market increases.

But today there was another optimism in the global markets. Government support packages to prevent the effects of the Corona virus on the economies of countries were able to strengthen the stock markets to some extent, and the Asian stock markets broke their 2-month record. 

Reuters writes; Today, Thursday, the price of gold rose after the metal confronted, despite signs of economic recovery after the submission of support packages. Today's market optimism about improving the economic situation has largely prevented gold prices from rising too much.

In times of economic crisis, investors are turning to investing in the yellow metal because they see it as a safe margin for their investments. 

In the other precious metals group, silver fell 3 cents, while platinum and palladium fell $ 6 and $ 60, respectively. 

Today's gold price was unchanged from the previous month, but increased by $ 381 compared to a year ago.

$ 1,700 gold index at the height of the US crisis

Recent unrest in the United States has pushed gold away from its seven-year high, with gold currently trading at $ 1,710 an ounce on the New York Mercantile Exchange