Gold Rising Despite Trump’s Threat on Stimulus And With US Dollar Weakening

Gold prices rose on Wednesday, December 23, supported by the dollar’s decline and continued optimism about the stimulus package in the United States even after President Donald Trump threatened not to sign the aid package linked to the pandemic.

Spot gold rose 0.3% to $1864.29 an ounce by 07:05 GMT, while US gold futures settled at $ 1869.5.

The US dollar fell 0.2% against a basket of currencies, which increases the attractiveness of gold to holders of other currencies.

The gold increase came despite Trump’s threat on Tuesday not to sign the coronavirus-related rescue package, saying it should be adjusted to increase the amount of the stimulus.

This benefits gold, which is considered a reserve against inflation, from lower interest rates that reduce the opportunity cost of acquiring the metal.

Silver increased 0.9% to $ 25.34 an ounce. Platinum rose 0.3% to $1004.60 and palladium rose 0.3% to $2,322.02.