Gold prices advance on hope for US stimulus aid

Gulf Today Report

Gold gained on Tuesday as investors hope for US Senate to agree on increasing the pandemic aid.

Spot gold rose 0.4% to $1,877.96 per ounce by 03:14 GMT, US gold futures fell 0.1% to $1,879.40. 

On Monday, gold rose as much as 1.3% following President Trump's approval of the US stimulus package. 

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Ilya Spivak, DailyFX currency strategist said, "while a weaker dollar has supported gold, the metal is going to have a hard time finding a supportive narrative given much of the good news - passing US stimulus, a Brexit deal - looks priced in while a resurgent pandemic may drive haven dollar buying."

Gold serves as a shield against inflation, it rose by more than 23% this year.

Silver rose 0.5% to $26.28 an ounce. Platinum climbed 0.8% to $1,039.66 and palladium was up 1.5% at $2,359.18.