Gold prices rise on stimulus hope and dollar decline
- Last updated: February 10, 2021 | 12:18
Gulf Today Report
Gold advanced on Wednesday as dollar weakens, hope for US stimulus boosted the metal’s appeal.
Spot gold rose 0.3% to $1,842.41 per ounce by 03:42 GMT while US gold futures gained 0.3% to $1,843.50.
The dollar declined to a near two-week low against other currencies. That has made gold affordable.
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Jeffrey Halley, a senior market analyst at OANDA said "with US yields holding steady, gold is moving inversely to the US dollar. That says to me this is not a gold story, rather it is a weak dollar story."
The US $1.9 trillion coronavirus relief bill will be passing through Congress soon.
"US inflation numbers are the key risk tonight," Halley said, adding a higher figure could cause a short-term spike in the US dollar and push gold lower."