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This article is more than 1 year old.

Gold rises as dollar dips on prospect of higher U.S. aid

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Gold, seen as a hedge against inflation, has risen 24 percent this year, largely driven by a raft of stimulus measures unleashed to mitigate the impact of the pandemic.

Gold rises as dollar dips on prospect of higher U.S. aid
Gold prices rose on Tuesday as the dollar weakened after the approval of larger coronavirus relief checks by Democratic-led U.S. House of Representatives, while improved risk appetite kept it below last session's one-week high.
Spot gold rose 0.6 percent to $1,882.26 per ounce by 1004 GMT. The metal climbed as much 1.3 percent on Monday after U.S. President Donald Trump's approval of a $2.3 trillion stimulus package.
U.S. gold futures rose 0.3 percent to $1,886.20.
"Gold is trading technically as well with underlying support coming from the weaker dollar driven by the prospect potentially of an even bigger check being distributed to U.S. consumers," said Saxo Bank analyst Ole Hansen.
"We are entering 2021 with some nervousness as we got stock markets at elevated levels and (on) prospects of additional stimulus against the prospect of vaccine starting to improve the economic outlook... but overall it hasn't reduced the appetite for safe-haven metals."
European stocks extended their year-end rally, while the dollar index fell 0.3 percent against rival currencies on hopes of an expanded U.S. stimulus package with the U.S. Senate set to vote on $2,000 COVID-19 relief checks.
Capping bullion's gains was a marathon COVID-19 vaccination campaign across eurozone cheering up prospects of global growth in 2021.
Broader markets will run with the economic recovery story next year but expansionary fiscal and loose monetary policy will keep gold prices pinned near current levels, said Hitesh Jain, lead analyst at Mumbai-based Yes Securities.
The metal should trade in a range between $1,850-$2,000 in the next three to six months, he said.
Gold, seen as a hedge against inflation, has risen 24 percent this year, largely driven by a raft of stimulus measures unleashed to mitigate the impact of the pandemic.
Silver rose 0.6 percent to $26.32 an ounce. Platinum gained 1.1 percent to $1,041.89 and palladium climbed 1.8 percent to $2,364.46.
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