Gold rallied as US Dollar Fell Despite Postponing a Vote on an American Stimulus Package

Gold prices rose on Wednesday, December 30, as the dollar fell, while investors ignored the Republican majority leader’s decision to postpone a vote in the US Senate on larger payments to mitigate the repercussions of the Coronavirus pandemic.

Spot gold rose 0.2% to 1,881.62 dollars an ounce. And gold in \futures rose 0.2% to $ 1886.20.

The dollar hovered near its lowest level in more than two years, as dealers set aside the decision of Mitch McConnell, Republican majority leader in the Senate, to postpone a vote to increase aid to mitigate the repercussions of Covid-19 to two thousand dollars.

Gold is seen as a hedge against inflation and a currency depreciating, likely caused by the massive stimulus measures being unveiled to curb the pandemic’s impact.

As for the other precious metals, silver rose 0.5% to $ 26.31 an ounce, platinum gained 0.6% to $ 1055.62, and palladium increased 0.8% to $ 2,346.18.