Gold prices rise slightly above $1,720

Gold prices on September 5 morning were just over $1,720 per troy ounce, which is held back by the expensive dollar. At the same time, the energy crisis in Europe supports the demand for a traditionally reliable asset, Report informs.

December gold futures on the New York Comex rose $1.15, or 0.07%, to $1,723.75 a troy ounce. December silver futures rose 0.23% to $17.922 an ounce.

The dollar index (the rate against a basket of currencies of six countries - US trading partners) rose by 0.47%, to 110.05 points. A value above 110 points is the highest level since June 2002. The appreciation of the dollar makes gold less affordable when bought in another currency, which keeps the price of the precious metal down.

At the same time, the attention of the markets is drawn to the ongoing energy crisis in Europe. Earlier, the heads of the G7 finance ministries in their final statement confirmed the plan to introduce a price cap on Russian oil and ban services for the sea transportation of oil and oil products from the Russian Federation if they are not bought at a limited price, and also called on all countries to join the initiative.

Markets fear that further escalation in the energy market could affect the outlook around European economies, which supports demand for traditionally more reliable gold.