Gold hits 4-week high amid weak dollar

Gold prices during trading in the American session closed at the highest level in the last four weeks. Stronger demand for the metal shelter came amid the recent sell-off in the US stock market.

However, the main factor influencing the gold market was the upbeat economic data from China this week. Imports rose 7 percent in September, while exports rose 15 percent during this period. This is good news for the commodity markets as China is the world's largest importer of commodities.

The US dollar index was firmly lower in recent trading. Meanwhile, NYMEX oil futures were weaker and hovered at a two-year low last week. In addition, cracks are now beginning to develop through the fault of the OPEC oil cartel, as reports have surfaced that member countries are offering large discounts on their oil in order to maintain their market share.

At the same time, analysts, taking into account the situation on the oil market, foresee a continuation of the recession in the near future, including the possibility of a fall below the level of $ 80.00 per barrel. While there are still some problems in the gold market, analysts at HSBC noted that they foresee a peak in demand from Asian markets that will be the main key to the market's recovery.