Dollar decline and stimulus lift gold globally

Gold has gained about 26% since the beginning of this year.

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Yesterday, gold prices rose 1% due to the weak dollar, and headed towards achieving the second consecutive weekly gain, as the attractiveness of the yellow metal increased as a hedge against inflation due to renewed optimism about a new US aid package to mitigate the repercussions of the Corona virus.

Spot gold rose 0.7% to 1,907.16 dollars an ounce, and gold rose 0.4% last week.

And gold in US futures increased 1% to 1912.4 dollars.

The dollar index fell against its rivals, and is on track for its second consecutive weekly decline.

Talks have resumed between House Speaker Nancy Pelosi and US Treasury Secretary Stephen Mnuchin on the coronavirus aid plan.

A major advance for Democratic presidential candidate Joe Biden is also seen as opening the way to major economic stimulus.

And gold, which is considered a hedge in the face of inflation and currency depreciation, has gained about 26% since the beginning of this year, supported by unprecedented stimulus globally to mitigate the economic effects of the Coronavirus pandemic.

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