Gold Rises 1% on The Decline of Dollar And Hopes of a US Stimulus

Gold prices rose 1% due to the weak dollar and heading towards achieving the second consecutive weekly gain, as the attractiveness of the yellow metal increased as a hedge against inflation due to renewed optimism about a new US aid package to mitigate the repercussions of the Corona virus.

Spot gold rose 0.7% to $ 1,907.16 an ounce, ahead of the opening of European markets. Gold rose 0.4% for the week.

Gold in US futures rose 1% to $ 1912.40.

The dollar index fell against its rivals and is on track for its second consecutive weekly decline.

Talks have resumed between House Speaker Nancy Pelosi and US Treasury Secretary Stephen Mnuchin on the coronavirus aid plan.

A major advance for Democratic presidential candidate Joe Biden is also seen as opening the way to major economic stimulus.

And gold, which is considered a hedge in the face of inflation and a depressed currency, has gained about 26% since the beginning of this year, supported by unprecedented stimulus globally to mitigate the economic effects of the Coronavirus pandemic.

As for the other precious metals, silver rose 1.5% to $ 24.17 an ounce and rose 2% for the week.

Platinum gained 1.5% to $ 875.33, and palladium gained 0.5% to $ 2,383.16.