Gold Rising as US Dollar’s Rally Receded

Gold prices rose, as the dollar fell and hopes for more stimulus measures in the United States re-emerged, but the yellow metal is on the path to post its biggest weekly decline since August.

Spot gold rose 0.3% to $ 1873.83 an ounce. But prices are down about 4% a week, as they have come under pressure from the overall rise in the dollar.

US gold futures rose 0.1% to $ 1,879.20.

The dollar index fell from a two-month peak, but it is heading towards achieving its best weekly performance since early April, up 1.5%, which increases the cost of gold to holders of other currencies.

Investors’ hopes are also growing after a lawmaker said on Thursday that Democrats in the House of Representatives are working on a $ 2.2 trillion coronavirus-related stimulus package that may be voted on next week.

A number of Fed policy makers, including Chairman Jerome Powell, have appeared publicly several times this week urging the US government to provide more financial support.

Gold prices have risen by more than 20% since the beginning of this year as central banks around the world introduced incentives and lowered interest rates to near-zero to counter the economic damage caused by the Covid-19 pandemic.

Given that the coronavirus situation has not improved and with low interest rates, gold is still tending to rise in the long term, said Brian Lan, managing director at Gold Silver Trading in Singapore.

As for the other precious metals, silver rose 0.1% to $ 23.32 an ounce and platinum rose 1%to $ 856.93.

Palladium gained 0.4% to $ 2,235.55 an ounce.