Gold rises with the decline of the dollar
Gold rose today, as the weak dollar and hopes for more monetary stimulus in the United States to ease the economy affected by the pandemic, dashed optimism about the possibility of distributing a vaccine for "Covid-19" next year.
Spot gold rose 0.2% to $ 1873.51 an ounce by 5.10 GMT, and there was little change in US gold futures at $ 1871.70.
US Treasury Secretary Stephen Mnuchin reassured markets on Friday that the Federal Reserve and the Treasury Department have many tools left to support the economy, after it decided to withdraw funds from a number of US central lending programs by the end of the year.
Michael McCarthy, chief strategist at CMC Markets, said, "Ironically, the failure to present a financial package supports gold," indicating that there may be more reliance on the US central bank's support, which will likely be in the form of liquidity. And cut interest rates as a result.
Gold, which does not yield a return, is considered a hedge against inflation that usually results from stimulus measures.
The yellow metal also received support from the dollar’s decline, which reduces the cost of buying gold for holders of other currencies.
As for other precious metals, silver rose 0.5% to $ 24.25 an ounce, while platinum rose 0.1% to $ 946.43 an ounce, and palladium gained 0.6% to $ 2339.56.
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