The dollar tumbled to a nearly two-year low against the euro on Monday, while gold flew high due to fears of an increase in the number of cases of coronavirus in the United States, and the Federal Reserve is expected to confirm this week its commitment to cut interest rates.
The Fed will most likely confirm that it will keep interest rates close to zero for years to come when Wednesday ends its two-day meeting.
By 14:50 UTC (Greenwich Mean Time) the euro was 0.9% higher at $ 1.1773, its highest level since September 2018.
The dollar index fell 0.92% to 93.490 points, the weakest level since June 2018.
The Japanese yen, which is considered a safe haven, was boosted by fears of deteriorating US-China relations.
Tensions rose between the world's two largest economies after Washington ordered a few days ago to close the Chinese consulate in Houston, prompting Beijing to close the US consulate in Chengdu.
The dollar fell 0.88% to 105.14 yen, the lowest since March 16th. The pound rose 0.88% against the US currency to 1.29 dollars, the highest level since last March 11.
What contributes to the decline in the price of the dollar is the difficult negotiations between the White House and Congress on a new plan to support the American economy and the continuing outbreak of the Corona virus, which has arisen in the United States, which impedes the resumption of activity in the country.
There is also concern that worse-than-expected results in US second-quarter gross domestic product could cause major selling to the dollar.
On the other hand, spot gold spot prices rose to an unprecedented level, and approached $ 1945 an ounce.
The continuous rise in gold prices is attributed to investor fears about the effects of Corona on the global economy, and the escalation of tension between China and the United States.
Gold futures prices rose to nearly $ 1970 an ounce.
Gold contracts in the spot market have achieved gains of 28% since the beginning of this year.
Analysts expect that the price of gold will soon exceed $ 2,000 an ounce. Analysts believe that gold is definitely a safe haven today, while other investments are experiencing a crash like sovereign bonds, which are affected by the major intervention of central banks.