Gold Rises on Virus Fears in Europe And Rise of in USD Curbed The Gains

Gold prices rose Thursday, March 25th, as an increase in Covid-19 infections in Europe fueled fears about the pace of the economy’s recovery, but the rise of the dollar curbed the gains of the yellow metal.

Spot gold increased 0.1% to $1736.51 an ounce and US gold futures rose 0.2% to $1736.50 an ounce.

Gold is also considered a hedge against inflation, which is usually lifted by broad-based stimulus aimed at boosting economic growth.

Members of the US Federal Council indicated that the Fed will start raising interest rates depending on the economic results and that it will not reduce its easing monetary policy until it witnesses an actual improvement.

Gold’s gains were limited by a jump in the dollar index to a new peak in four months, due to concerns about the extension of economic isolation measures in Europe and a possible increase in taxes in the United States.

As for the other precious metals, palladium fell 0.1% to $2,631.91 and platinum rose 0.2% to $ 1,170.

Silver rose 0.2% to $25.12, after falling to its lowest level in more than two weeks, recording $ 24.93 earlier in the session.