Gold Jumps 2% on Dollar’s Decline And Bets on Stimulus

Gold rose about 2% on Friday, as the dollar fell to its lowest level in nearly three weeks and bets increased on new stimulus in the United States, prompting investors to buy the precious metal to hedge against potential inflation.

Spot gold rose 1.8% to 1927.51 dollars an ounce by 1424 GMT.

It is on its way to achieve its second consecutive weekly gain, which may reach 1.5%.

Gold in US futures rose 2.1% to 1934 dollars.

US President Donald Trump has called for a “minuscule” aid package that could bail out the troubled airline sector after talks with Democrats over a comprehensive aid package were halted earlier this week.

Besides, a major advance for Democratic presidential candidate Joe Biden raised the prospects for more stimulus, making gold more attractive.

Meanwhile, the dollar fell in light of growing expectations that Biden would win, making gold less expensive for holders of other currencies.

As for the other precious metals, silver rose 3.6% to $ 24.68 an ounce, up 4% this week.

And platinum gained 2.7% to record $ 885.38, and palladium gained 3.4% to $ 2,435.64.