Gold rises despite the rise of the dollar

gold


Gold prices rose today, Monday, after hitting the lowest level in a month and a half earlier in the session, supported by the chances of approving a huge American package for relief from the repercussions of the Corona virus.

By 07:28 GMT, the spot price of gold rose 0.5 percent to $ 1836.29 an ounce, after earlier dropping to $ 1809.90, its lowest level since December 2.

While US gold futures rose 0.4 percent to $ 1836.80 an ounce.

“The gold market is still relatively supportive at these levels, as the rise of the US dollar at the present time is more related to the search for a safe haven, and not a noticeable shift towards a stronger dollar,” said Stephen Ince, Axi’s chief global market strategist.

“The American stimulus is very large, we will get about 1.9 trillion dollars or 1.5 trillion, and both scenarios are good for gold,” he said.

The rise in gold came despite the rise of the US currency, as the US dollar hit its peak in four weeks, which increases the cost of gold for holders of other currencies.