Gold Dropping as US Dollar’s Strength Overwhelmed the Stimulus Package

Gold prices plunged today, Tuesday, as the strength of the dollar overshadowed the support resulting from the US Congress’s approval of a long-awaited aid package of nearly $ 900 billion linked to the Coronavirus, while sentiment was also affected by some profit-making sales.

And gold fell in the spot market 0.3% to 1870.69 dollars an ounce by 0702 GMT. The metal fell in US futures trading by the same amount, to $1876.90.

Gold is up 23% this year, mainly driven by a series of stimulus measures due to the pandemic, raising fears of inflation. The precious metal is often used as a hedge against inflation.

As for the other precious metals, silver fell 1.6% to $25.74 an ounce. Platinum fell 2% to $989.27, while palladium rose 0.1% to $ 2,310.75.