Gold prices rise as dollar falls
- 09 Feb 2021
Gulf Today Report
Gold gained on Tuesday, a near one-week high as the dollar declined and markets remain optimistic for US fiscal stimulus reviving the economy.
Spot gold rose 0.5% to $1,839.02 per ounce by 05:36 GMT, having hit $1,843.04 earlier in the session, while US gold futures climbed by 0.5% to $1,842.60.
Micheal Langford, director at corporate advisory AirGuide said, "the main driver for gold is the confidence around US President Joe Biden's relief bill and the expectation of a further weakening of the US dollar which will come as a result of the aid."
READ MORE
Gold edges higher on US stimulus hope
Sharjah property sector zooms, realty deals hit Dhs15.9b
Zimbabwe agribusiness firms focus on Dubai to boost trade
The dollar declined against a basket of currencies, making gold cheaper for those with other currencies.
Gold serves as a shield against inflation and currency debasement due to stimulus injected into the economy.
According to IIya Spivak, currency strategist at DailyFX, higher inflation data along with vaccine adoption and easing lockdowns can nudge the Treasury yields higher and weigh on gold.
Higher yields increase the opportunity cost of holding non-yielding bullion.
