[ad_1]
The price of gold rose slightly on Wednesday after US President Donald Trump threatened not to sign the pandemic relief bill, causing the dollar to fall.
As of 12:50 p.m. GMT, the spot price of gold was up 0.1% to $ 1,860.81 an ounce, while US gold futures fell 0.3% to $ 1,864.60 per ounce.
The metal has risen around 23% year-to-date and is heading for its biggest annual gain since 2010, as central banks and governments around the world embark on unprecedented stimulus measures to mitigate the fallout economic aspects of the coronavirus crisis.
“Even if Donald Trump refuses to sign the law, Biden is widely expected to adopt it, so we don’t foresee any risk to gold at this time,” said Bernard Daddah, analyst at Natexis.
Gold is used as a hedge against inflation, which is caused by increased cash flow to the economy, and benefits from low interest rates which reduce its opportunity cost.
The dollar index fell 0.2% against major rival currencies after Trump threatened not to sign the recovery bill, increasing gold’s appeal to non-U.S. Investors.
Silver rose 0.8% to $ 25.31 an ounce. Platinum rose 0.5% to $ 1,007.39 and palladium 0.4% to $ 2,322.52 an ounce.
Follow the economic statement via Google News
Source link
