Gold price jump as dollar drops, US stimulus cheer
- 01 Mar 2021
Gulf Today Report
Gold prices advanced on Monday beyond 1% as the dollar declines and the US passed a massive $1.9 trillion stimulus package.
Spot gold was up 1% at $1,750.24 per ounce by 05:44 GMT, after rising as much as 1.1% earlier in the session while US gold futures rose 1.1% to $1,748.50.
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Stephen Innes, chief global market strategist at Axi said, "a reversal of the higher yield trend and a weaker dollar are allowing gold to move a little bit higher."
The dollar dropped from a one-week high, increasing gold’s appeal for those holding other currencies.
Gold serves as a shield against inflation that is likely to happen due to stimulus, higher bond yields challenge that status.
