Gold is heading to end the month lower in light of the rising dollar

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Gold prices are trading in a narrow range today, Friday, but prices are on the path of recording a weekly and monthly decline as the high dollar dissipates the luster of the yellow metal, according to Reuters.

Spot gold rose 0.2 percent to $ 1844.86 an ounce by 0732 GMT. Prices fell 0.5% in the week and 2.7% in the month. And US gold futures rose 0.4 percent to $ 1,847.90.

“Gold will continue to remain largely unstable as it is waiting for a suitable catalyst,” said Michael McCarthy, head of market strategy at CMC Markets.

He added that the approval of US stimulus, a possible increase in inflation and the next set of international central bank measures, will be fundamental factors for gold.

Gold is seen as a hedge against inflation, likely caused by broad stimulus.

The dollar rose 0.9 percent this month, supported by the rise in US Treasury yields and thanks to expectations that the fiscal spending package proposed by US President Joe Biden will not be as large as the proposed 1.9 trillion dollars.







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