Gold Reaches a Peak of Two Months, Supporting Expectations of a Democratic Victory in Georgia

Gold prices hit a two-month high on Wednesday, with the dollar retreating due to growing expectations that Democrats will win the run-off in the US Senate elections in Georgia, which is likely to support the adoption of additional fiscal stimulus packages.

During the session, gold rose in spot transactions to more than $ 1956 an ounce after approaching its highest level in two months at about $ 1959 an ounce earlier in the session.

And US gold futures rose to more than $ 1960 an ounce.

The Democrats are leading in the run-off in the Senate elections that will determine control of the House, which could pave the way for an administration with generous spending during the rule of President-elect Joe Biden.

The precious metal that yields no return is a hedge against inflation, which is likely to result from unprecedented fiscal stimulus packages.

The dollar index fell to its lowest level in two and a half years, which makes gold less expensive for holders of other currencies.

As for the other precious metals, silver increased to about $ 28 an ounce. Platinum has slipped to more than $ 1,109 an ounce. Palladium rose to more than $ 2,471 an ounce.