Gold prices rise on stimulus hope and dollar decline - GulfToday

Gold prices rise on stimulus hope and dollar decline

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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."

 

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