Gold prices rose after hitting the lowest level in a month and a half earlier in the session, supported by the chances of approving a huge American package for relief from the repercussions of the Corona virus, which overshadowed the rise of the dollar and strengthened the metal’s attractiveness as a hedge against inflation.
The spot price of gold rose 0.5% to $ 1836.29 an ounce after falling to $ 1809.90, its lowest level since the second of December. US gold futures rose 0.4% to $ 1836.80 an ounce.
“The gold market is still relatively supportive at these levels, as the rise of the US dollar at the present time is more related to the search for a safe haven, not a noticeable shift towards a stronger dollar,” said Stephen Ince, senior global market strategist at Axi.
He continued: The American stimulus is very large, we will get about 1.9 trillion dollars or 1.5 trillion, and both scenarios are good for gold. The US dollar hit its peak in four weeks, increasing the cost of gold for other currencies’ holders.
US President-elect Joe Biden last week unveiled a proposed $ 1.9 trillion stimulus package to stimulate the economy, and said he wanted to distribute 100 million doses of the Covid 19 vaccine during the first 100 days of his presidency.
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