Gold increases as US stimulus lowers the dollar

Gulf Today Report

Gold prices jumped on Thursday as US fiscal stimulus progresses, and Federal Reserve pledge to retain low rates.

Spot gold rose 0.3% to $1,869.36 per ounce by 06:00 GMT, having hit a one-week high of $1,870.11 earlier in the session.

US gold futures increased 0.7% at $1,871.60. The upcoming fiscal stimulus is likely to support gold although it is not what the market expected and might not reverse gold’s downward trend, said DailyFx currency strategist Ilya Spivak. 

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According to Stephen Innes, chief global market strategist at financial services firm Axi, inflation is expected to push the dollar lower and break-evens higher, which would send gold higher.

Silver rose 0.4% to $25.44 an ounce. Platinum gained 0.8% to $1,042.53 and palladium was up 0.6% at $2,339.70.