Gold Rises to a Week High on The Back of The Dollar’s Decline And Hopes of US Stimulus

Gold rose Wednesday, December 2, to its highest level in more than a week, supported by the dollar’s decline, while signs of progress in discussions on a new US stimulus package to mitigate the repercussions of the Covid-19 pandemic boosted the appetite for the precious metal as a hedge against potential inflation.

Republican Senate Majority Leader Mitch McConnell urged Congress to pass a $ 1.4 trillion spending bill that includes incentives to mitigate the repercussions of the pandemic, while some members of the Senate and House of Representatives proposed aid measures worth $ 908 billion.

By 12:00 GMT, spot gold rose 0.6% to $ 1825.41 an ounce, after reaching $ 1832.20 an ounce earlier, its highest level since November 24. US gold futures rose 0.6% to $ 1829.30 an ounce.

Gold recorded its worst monthly performance in four years in November, due to optimism about an economic recovery supported by the start of the use of vaccines against the Coronavirus.

As for the other precious metals, silver rose 0.4% to $ 24.10 an ounce. Platinum rose 1% to $ 1009.47 an ounce. Palladium fell 0.2% to $ 2,402.46 an ounce.