Gold prices climb as coronavirus cases soar

Gulf Today Report

Gold prices recorded gains at the beginning of the year by notching an eight-week peak on Monday as coronavirus cases surge.

Spot gold rose 1.1% to $1,919.11 per ounce, its highest since Nov. 9 at $1,925.05, while US gold futures climbed 1.6% to $1,925.

The dollar fell giving room for gold to be cheaper for other unit holders. Also, British lockdown and Japan considering state of emergency boosted gold prices. 

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Investors are also looking at upcoming US runoff elections, the outcome will determine the control of the Senate.

"Gold will go higher if the Democrats win the Senate, basis freedom to engage in more adventurous fiscal policy," said Nicholas Frappell, global general manager at ABC Bullion.

Factors from 2020 will continue supporting the gold in climbing higher in the first quarter of 2021, also the success of coronavirus vaccine will determine the prices, he added.