Gold Dropping From a 3-Week High as Dollar Stabilizes

Gold fell from its highest level in three weeks, as the dollar recouped some of its losses after a new US relief package to ease the repercussions of Corona faced opposition.

Spot gold fell 0.1% to $ 1927.11 an ounce, after reaching its highest level since September 21 at $ 1932.69 earlier in the session.

And US gold futures rose 0.5% to 1934.70 dollars an ounce.

The dollar index settled and is trading below a three-week high against its rivals, after negotiations over a US stimulus package faced opposition, while the yuan weakened after the Chinese central bank took action seen as aimed at limiting the currency’s strength.

Gold is considered a hedge against inflation and the depreciation of the currency, and the yellow metal has gained more than 27% since the beginning of this year, with the support of unprecedented stimulus measures globally to alleviate the economic repercussions of the Covid-19 pandemic.

As for other precious metals, silver gained about 1% to $ 25.36 an ounce, while palladium fell 0.1% to $ 2,437.79, while platinum rose 0.2% to $ 887.57.