Gold Rises 1% on Dollar Weakness Amid US Stimulus

Gold rose more than 1% on Monday, recovering from its lowest level in more than eight months touched in the previous session, as the dollar weakened while the United States approved a huge stimulus package worth 1.9 trillion dollars.

Gold rose in the spot market 1% to $1750.24 an ounce, and it had increased 1.1% earlier in the session.

And gold in US futures increased 1.1% to $1748.50 an ounce.

Gold prices tumbled 3% on Friday, the biggest monthly drop since November 2016 in February, due to higher US bond yields.

The dollar fell from its highest level in a week, which is recorded in the previous session, which increases the attractiveness of gold to holders of other currencies.

Gold is seen as a hedge against inflation, which is the potential outcome of a massive stimulus package while rising bond yields represent a challenge to this situation.

As for other precious metals, silver rose 0.8% to $26.84 an ounce, while palladium rose 1.2% to $2,344.76, and platinum gained 2.6% to $1,219.