US stimulus expectations raise gold despite the rising dollar

Gold prices rose on Monday, January 18th, after hitting the lowest level in a month and a half earlier in the session, supported by the chances of approving a huge US relief package from the repercussions of the Coronavirus, which overshadowed the rise of the dollar and strengthened the metal’s attractiveness as a hedge against inflation.

By 07:28 GMT, the spot price of gold was up 0.5% to $ 1836.29 an ounce, after falling to $ 1809.90, its lowest level since December 2nd. US gold futures rose 0.4% to $ 1836.80 an ounce.

Last week, US President-elect Joe Biden unveiled a proposed $ 1.9 trillion stimulus package to stimulate the economy and said he wanted to distribute 100 million doses of the Covid-19 vaccine during the first 100 days of his presidency.

In other precious metals, silver rose 1.2% to $ 25.03 an ounce. Platinum rose 0.7% to $ 1081.10, while palladium rose 0.3% to $ 2,389.82 an ounce.