Gold prices inch up as dollar firms
- 05 Feb 2021
Gulf Today Report
Gold prices edge higher on Friday as dollar firms, the metal is recovering from a more than two-month low hit in the previous session.
Spot gold rose 0.1% to $1,794.11 per ounce by 02:47 GMT. Prices fell over 2% to their lowest level since Dec. 1 on Thursday.
Margaret Yang, DailyFX strategist said, "there is some technical rebound as investors think last night's drop was overdone, but still overall trend in gold remains bearish biased on rising dollar and Treasury yields."
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The dollar was set for its best week in three months, while longer-term US Treasury yields rose.
The passage of US $1.9 trillion COVID-19 stimulus aid is likely to support gold.
Jeffrey Halley, a senior market analyst at OANDA said, gold's role as an inflation hedge will return as the economic recovery starts accelerating by late second-quarter.
