Gold rises as dollar weakens following Biden’s victory

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.