Gold is Recovering From Its 9-Month Low on The US Stimulus And Falling Bond Yields

Gold rebounded today from its lowest level in nine months recorded last week, with the decline in bond yields and the approval of a huge US stimulus package to increase the attractiveness of the metal as a hedging tool in the face of inflation.

Gold rose in the spot market 0.1% to$ 1701.81 an ounce, after hitting its lowest level since the eighth of June at $1686.40 on Friday aand the metal in US futures rose 0.1% to $1,700.90.

The yield on US Treasury bonds for ten years has stabilized below the peak of more than a year recorded on Friday, which reduces the opportunity cost of possessing gold that does not yield a return.

The precious metal was supported by the US Senate approval of a $1.9 trillion relief package on Saturday.

The dollar hovered near its three-month peak on Friday, which raises the cost of gold for holders of other currencies.

Silver increased 0.9% to $25.40 an ounce. Palladium rose 0.2% to $2,344.07, and platinum rose 0.2% to $1,132.12 an ounce.