Gold is up 1% on Dollar’s Decline

Gold rose about 1%, as the dollar fell while investors held signs of a policy of monetary easing issued by Jerome Powell, Chairman of the Federal Reserve Board (the US Central Bank).

Spot gold rose 0.9% to 1946.55 dollars an ounce with the close of the Tokyo Stock Exchange, after falling 1.3% on Thursday. And gold profit about 0.4% since the beginning of the week, after losses incurred for two consecutive weeks.

US gold futures rose 1.1% to $ 1954.10.

Prices fluctuated between a 1% up and a 2% down on Thursday before and after Powell’s speech.

Gold usually benefits from low-interest rates, as it reduces the opportunity cost of owning the yellow metal, which does not generate a return, and puts pressure on the dollar.

The dollar index fell 0.4% against its rivals and is on track to record its worst weekly performance in a month, reducing the cost of gold to investors holding other currencies.

The high incidence of Coronavirus has cast doubts on the fast recovery of the economy and stimulated central banks to lower interest rates and ease monetary policy, which helped gold to rise about 28% since the beginning of the year.