Gold is Gaining as US Dollar Continues to Decline

Gold prices rose near their highest level in a week on Tuesday, February 9th, as the dollar faltered and expectations that a huge US fiscal stimulus will soon be passed to revive the world’s largest economy.

Spot gold rose 0.5% to $1839.02 an ounce, after reaching $1843.04 earlier in the session, its highest level since February 3, while US gold futures rose 0.5% to $1,842.60.

The dollar fell to its lowest level in more than a week against competing currencies, reducing the cost of gold to holders of other currencies.

Congress is expected to pass Biden’s $ 1.9 trillion packages to mitigate the fallout from the Corona pandemic before March 15 even without Republican support. Gold is viewed as a hedge against inflation and a depreciating currency, likely stemming from a broad-based stimulus. Analysts said the record rise in Bitcoin boosted some sentiment.

Among the other precious metals, silver rose in spot transactions 0.7% to $27.43 an ounce, while palladium rose 0.5% to $2341.54.

Platinum rose 1.9% to $1,179.27 after earlier hitting $1,182, the highest level since August 2016.