Gold rises as dollar weakens following Biden’s victory
- 09 Nov 2020
Gulf Today Report
Gold prices climbed on Monday due to the weak dollar and prospects of large coronavirus stimulus measures under the new administration.
Spot gold rose 0.5% to $1,960.99 per ounce by 05:18 GMT, hitting its highest since Sept. 16 at $1,965.33. US gold futures gained 0.6% to $1,963.20 per ounce.
Howie Lee, economist at OCBC Bank said the hope of more stimulus is keeping gold supported and have pushed the dollar down.
"This could be the beginning of a long bull run (for gold),” he added.
The dollar index has hit a 10-week low.
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Democrat Biden has emerged victorious in the US election but it seems republicans still have control of the Senate.
Republicans retaining the control of the Senate may lead to a small stimulus package.
According to Daniel Hynes, ANZ analyst, the economy is being shaped by the pandemic. Low-interest rates and weaker US dollars will last for a while, thereby, gold performing relatively well.
On the technical front, spot gold may rise to $1,975, having cleared resistance at $1,951, according to Reuters technical analyst Wang Tao. Silver rose 0.9% to $25.81 per ounce. Platinum gained 1.4% to $901.42, while palladium fell 0.7% to $2,474.34.
