Gold rises on the decline of the dollar

Gold prices rose today, Friday, due to the weakness of the dollar and is heading towards a second 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.

Spot gold rose 0.7 percent to $ 1,907.16 an ounce, by 06:31 GMT. 

While gold in US futures contracts increased 1 percent to 1912.40 dollars an ounce.

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 US 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 a depressed currency, has gained about 26 percent since the beginning of this year, supported by unprecedented stimulus globally to mitigate the economic effects of the Coronavirus pandemic.

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