Gold rose today, as the yellow metal’s appeal was strengthened as a hedge against inflation thanks to expectations of an eventual major US stimulus package, although the strong dollar curbed the gains.
Spot gold rose 0.1 percent to $ 1,856.33 an ounce, by 05:49 GMT. US gold futures also rose 0.1 percent to $ 1856.80 an ounce.
Chuck Schumer, the leader of the Democratic majority in the US Senate, said that Democrats may try to pass most of the $ 1.9 trillion aid bill to mitigate the fallout from the Corona virus, using a procedural maneuver to avoid Republicans blocking the bill.
For his part, Stephen Ince, senior global market strategist at Axi Financial Services, said: “If we get the stimulus, gold can breach the $ 1900 level. The faster the package is executed, the more favorable it is for gold. Whether the process is smooth. Or not, the market doesn’t care. ”