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Gold rose on Friday and is on track to post the best weekly performance in more than three months as the dollar fell amid uncertainty over the outcome of the US election, with bets on the yellow metal receiving support in due to continued pandemic-driven stimulus and accommodative monetary policy.
Spot gold rose 0.1% to close at $ 1,951.35 an ounce. That took this week’s gains to 3.9%, which is the biggest weekly gain for gold since the end of July.
“The outlook for gold is positive,” said Michael Hewson, head of market analysis at CMC Markets in the UK, citing hazy pressure on the dollar.
“It could get messy … It’s likely that the US Federal Reserve will be more inclined to intervene as a result, because politicians are so concerned about the conflict, and the dollar will continue to fall.”
The dollar is near its lowest level in two months, increasing the attractiveness of gold for holders of other currencies.
Democratic candidate Joe Biden is close to victory, while President Donald Trump says elections are “stolen” from him, even as votes are still counted in important states.
Analysts believe the prospects of an immediate stimulus package are being dissipated by a divided Congress, raising hopes that the Federal Reserve may need to close the gap.
And interest rates close to zero amid the massive stimulus measures induced by the global pandemic have helped non-yielding gold, seen as a hedge against inflation, to rise by more than 28% since. the start of this year.
As for other precious metals, silver gained 1.5% to $ 25.71 per ounce. Platinum rose 1.1%, to $ 902.43, while palladium gained 0.6%, to $ 2,390.18.
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