Gold Rallies as US Dollar Falls and Pandemic Fears Grow

Gold won today, Friday, as the dollar fell, which pushed safe haven flows towards the yellow metal again after an increase in cases of Coronavirus in the United States and Europe, threatening to derail the global economic recovery from its course.

Spot gold rose 0.1% to $ 1869.16 an ounce before the European markets opened. Gold witnessed sharp declines in the past two sessions, as it lost its position against the dollar as a preferred hedge in the face of the risks of the pandemic worsening and the US presidential elections that will be held on Tuesday.

US gold futures rose 0.1% to $ 1,869.

The dollar index stopped its rise and stabilized against a basket of currencies, which reduces the cost of the precious metal for holders of other currencies.

The United States set a new record for new infections in one day on Thursday, while Germany and France ordered new general isolation measures.

Gold is on track to record a decline for the third consecutive month, with sentiment negatively affected by the lack of progress on a new US stimulus package, as the yellow metal is considered a hedge in the face of inflation and a depressed currency.

Despite its recent decline, gold is up nearly 24% since the start of the year, thanks to unprecedented stimulus measures in the world.

As for the other precious metals, silver fell 0.3% to $ 23.21 an ounce. Platinum fell 0.1% to $ 847.02, and palladium’s profit fell 0.6% to $ 2,205.66.