Gold at a Peak of Two Weeks on Stimulus Headlines

Gold prices rose to a two-week high on Tuesday, December 8th, thanks to hopes that US lawmakers will reach an agreement on a financial stimulus package to ease the economic consequences of the growing infection with the Coronavirus.

Gold rose in the spot market 0.3% to $ 1869.06 an ounce by 05:04 GMT, after touching earlier in the session, its highest level since November 23 at $ 1871.52. And gold in US futures rose 0.4% to $ 1873.50 an ounce.

The imposition of stricter isolation measures to curb the growing infections highlighted the need for more stimulus, and California announced new restrictions yesterday, while New York is considering banning eating inside restaurants. Gold is seen as a hedge against inflation that could result from a large stimulus package.

As for other precious metals, silver rose 0.6% to $ 24.65 an ounce, and platinum settled at $ 1021.50, while palladium gained 0.1% to $ 2333.74.