Gold prices rise as investors remain hopeful for a stimulus

Gulf Today Report

Gold gained on Thursday due to the weakness of the dollar as investors remain optimistic for announcement of stimulus measures due to surge in cases and discouraging US jobs data.

Spot gold rose 0.2% to $1,809.61 per ounce by 05:31 GMT. US gold futures were up 0.1% at $1,807.80.

The confidence for a vaccine being available soon has improved has increased risk sentiments, headwind for gold, said Harshal Barot, a senior research consultant for South Asia at Metals Focus. 

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However, the weakness of the dollar serves as a support for gold prices, he added.

Stephen Innes, chief global market strategist at Axi financial services said, "the vaccine narrative has watered down gold's appeal immensely and it will continue too until we finally move into an inflationary world."

Gold serves as a shield from inflation due to the benefit it gained from the injection of a large stimulus.