Gold Falls as The Dollar Recovers, Attention Turns to Georgia’s Elections

Gold prices fell on Tuesday after reaching an eight-week high, at a time when the US dollar recovered from its lowest level in several years ahead of a re-election for the US Senate in Georgia that will determine the future course of fiscal stimulus in the world’s largest economy.

Gold fell in immediate transactions to more than 1939 dollars an ounce during the session, after reaching the highest level since the ninth of November at 1945 dollars earlier in the session, while US gold futures fell to 1944 dollars.

The yellow metal jumped by more than 2% on Monday after the dollar fell to its lowest level since April 2018, but the greenback has since recovered.

The dual run-off elections in Georgia will determine which party controls the US Senate. The Democrats’ victory is seen as boosting the stimulus.

As for other precious metals, silver rose 0.1% to $ 27.24, platinum lost 0.9% to $ 1060.47, and palladium rose 0.3% to $ 2380.10.