Gold is Gaining as The Dollar Weakens on US Stimulus Outlook

Gold prices rose today, Wednesday, as the dollar retreated after Janet Yellen, a candidate for the position of US Treasury Secretary, stressed the need for a major stimulus to help the economy recover from the Coronavirus crisis, which boosted the demand for the yellow metal as a hedge.

On Tuesday, Yellen urged policymakers to approve large spending on aid to mitigate the repercussions of the Corona pandemic, adding that the benefits will outweigh the costs of a larger debt burden.

Spot gold gained 0.6% to $ 1,850 an ounce. US gold futures added 0.5% to $ 1,850.

As for the other precious metals, silver rose 0.8% to $ 25 an ounce. Platinum rose 1.1% to $ 1,095 and palladium profit 0.6% to $ 2,367.

The dollar retreated further from a 4-week high it reached earlier this week, while most US Treasury bond yields declined after Yellen called for the cancellation of large corporate tax cuts introduced in 2017.