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Sputnik
Gold rose today, hovering near the peak of a week it reached in the previous session, as the metal’s attractiveness rose as a hedge in the face of inflation, after the dollar fell and hopes rose for an American stimulus package.
Gold rose in spot trading 0.3 percent to $ 1842.90 an ounce, by 07:16 GMT, and US gold futures won 0.4 percent to $ 1845.30.
The dollar fell to near its lowest level in two weeks against its rivals.
Geoffrey Haley, chief market analyst at Oanda, said, “With the stability of US yields, gold moves backwards with the dollar. This is not a gold-related issue, but rather a weak dollar.”
It is expected to pass a bill of aid in Congress worth 1.9 trillion dollars proposed by US President Joe Biden to alleviate the repercussions of the Corona virus, despite Republican opposition to the size of this aid.
Haley said: “US inflation figures represent a great danger,” adding that a higher figure may cause a strong rise in the short term for the US dollar and push gold down.
Higher inflation boosts gold, but it also raises treasury yields, which in turn increases its cost of the opportunity to acquire the yellow metal.
Source: Reuters
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