Gold is gaining in light of the dollar’s weakness due to expectations of US stimulus

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Gold prices rose today, Wednesday, as the dollar fell after Janet Yellen, a candidate for the position of US Treasury Secretary, stressed the need for a major stimulus to help the economy recover from the Corona virus crisis, which boosted the demand for the yellow metal as a hedge tool.

And gold profit in spot transactions 0.6 percent to 1850.66 dollars an ounce. US gold futures added 0.5 percent to $ 1,850.
On Tuesday, Yellen urged policymakers to approve large spending on aid to mitigate the repercussions of the Corona pandemic, adding that the benefits will outweigh the costs of a larger debt burden.
The dollar retreated further from a four-week high it reached earlier this week, while most US Treasury bond yields declined after Yellen called for the cancellation of large corporate tax cuts introduced in 2017.
Lower yields reduce the opportunity cost of holding the zero-yielding precious metal.
US President Joe Biden’s $ 1.9 trillion stimulus package plan will be in focus after he is sworn in on Wednesday, while attention will also focus on the pace of distribution of vaccines against Covid-19, which has killed 400,000 in the country.
As for the other precious metals, silver rose 0.8 percent to $ 25.40 an ounce. Platinum increased 1.1 percent to $ 1,095.13, and palladium gained 0.6 percent to $ 2,367.29.




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