Gold advances as investors await US stimulus

Gulf Today Report

Gold prices jump on Tuesday as investors remain optimistic for a US fiscal stimulus to aid the pandemic-hit economy.

Spot gold rose 0.3% to $1,869.06 per ounce by 05:04 GMT, having touched its highest since Nov. 23 of $1,871.52 earlier in the session. US gold futures were up 0.4% at $1,873.50.

Market keenly awaits stimulus package, the size of the package, when it arrives and how it affects inflation will determine the gold deal, said IG Markets analyst Kyle Rodda. 

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However, dollar is regaining its strengths as it awaits stimulus or uncertainty of Brexit is a risk to gold prices.

According to Margaret Yang, a strategist at DailyFX, the current US stimulus package is not encouraging for the market, it is less likely to increase gold price.

The large stimulus could lead to inflation, gold serves as a shield against inflation.

Silver rose 0.6% to $24.65 per ounce and platinum was steady at $1,021.50, while palladium gained 0.1% to $2,333.74.