Gold prices rose, today, Tuesday, to rise from its lowest level in a month and a half, which it reached in the previous session.
Spot gold rose 0.1 percent to $ 1837.79 an ounce by 05:37 GMT, recovering from its lowest level since December 2 at $ 1809.90, which it reached on Monday.And US gold futures won 0.5 percent to $ 1839.40.
“The main factor appears to be the (US) currency,” said Michael McCarthy, chief strategist at CMC Markets.
McCarthy added, “Despite the recent recovery in the dollar, there may be more weakness and that will support the yellow metal.”The dollar fell from its highest level in four weeks, which it reached in the previous session, before the testimony of the candidate for the position of US Treasury Secretary Janet Yellen before the Senate.
The US currency began the year by about two percent against major counterpart currencies, supported by the rise in US Treasury bond yields, in response to US President-elect Joe Biden’s plan to mitigate the repercussions of the $ 1.9 trillion Corona pandemic.
The yield on the benchmark 10-year US Treasury notes traded in a narrow range, but held above 1 percent.
Investors are now looking forward to the next round of fiscal stimulus in the United States under the proposal of the US president-elect. Biden is scheduled to be inaugurated tomorrow, Wednesday.
Eurozone finance ministers also pledged continued financial support to their economies.
As for the other precious metals, silver fell 0.9 percent to $ 25.11 an ounce.
Platinum rose 1.4 percent to $ 1093.93, while palladium rose 0.3 percent to $ 2,379.57.