Dip-Buyers Pounce As Gold Nears $2,000 An Ounce

On Monday, gold prices rose by a little more than $1 an ounce to trade just above $2,000 an ounce, following an early-session drop, while the U.S. dollar started to lose some strength and ease some of its earlier gains.

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As dipbuyers continued to flock to gold, buoyed by a weaker dollar, precious metals analysts paid close attention to technical levels for the yellow metal, according to Marios Hadjikyriacos, senior investment analyst at XM, as dip-buyers continued to flock to gold.

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When the new trading week began, gold was on the ropes, feeling the heat of a recovery in the dollar and the yield of Treasury securities. In spite of this, buyers came in to defend the $1.950/ounce region, reducing the losses, and suggesting investors are still on the lookout for dips in the market as the recent Fed liquidity injections work their magic," Hadjikyriacos said.

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A gauge of the strength of the dollar against a basket of rival currencies, the ICE U.S. Dollar Index , as it was known in recent trade, was down 0.2% at 102.36 after it traded above 103 earlier in the session.

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As well as this sudden increase in oil prices across commodity markets, Saudi Arabia and other members of OPEC+, which are part of the cartel, cut production for the first time in months.

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Oil prices for May delivery of West Texas Intermediate crude rose by $4.88, or 6.4%, to $80.68 per barrel as a result of this increase.