Gold won today, Friday, as the dollar fell, which pushed safe haven flows towards the yellow metal again after an increase in cases of Coronavirus in the United States and Europe, which threatens to derail the global economic recovery from its path..
Spot gold rose 0.1 percent to 1869.16 dollars an ounce by 0711 GMT.
Gold witnessed sharp declines in the past two sessions, as it lost its position against the dollar as a preferred hedge in the face of the risks of the pandemic worsening and the American presidential elections that will be held on Tuesday..
US gold futures rose 0.1 percent to $ 1,869.
The dollar index stopped its rise and stabilized against a basket of currencies, which reduces the cost of the precious metal for holders of other currencies.
“The dollar recovery seems to be over,” said Edward Moya, chief market analyst at Oanda“.
“The spread of the virus will provide additional pressure on Congress to provide more support … This will enhance the circulation of stimulus in the future,” he added.“.
The United States set a new record for new infections in one day on Thursday, while Germany and France ordered new general isolation measures..
Gold is on track to record a decline for the third consecutive month, with sentiment negatively affected by the lack of progress on a new US stimulus package, as the yellow metal is considered a hedge in the face of inflation and a depressed currency.
Despite its recent decline, gold is up nearly 24 percent since the start of the year, thanks to unprecedented stimulus measures in the world.
As for the other precious metals, silver fell 0.3 percent to $ 23.21 an ounce. Platinum fell 0.1 percent to $ 847.02, and palladium’s profit fell 0.6 percent to $ 2,205.66.
Follow the economic statement via Google News