(Reuters) – Gold prices entered higher Wednesday as weakness in the dollar worries the U.S. stimulus deal after President Donald Trump threatened not to sign the pandemic relief bill.
Spot gold rose 0.3% to $ 1,865.01 per ounce before 0333 GMT, while U.S. gold futures were stable at $ 1,869.80.
The U.S. dollar fell 0.1% against a basket of currencies, increasing the attractiveness of gold among custodians of other units.
With the market on prices in much of uncertainty related to a pandemic and the U.S. fiscal stimulus contract, gold is likely to be a water betrayal in the coming weeks and any potential will undermine over from new unidentified uncertainty, said Michael Langford, director at AirGuide corporate advisor.
“Perhaps the next move for asset managers is to eliminate risk … I think we will see bigger flows towards gold trading currencies as they take some risk where ‘board, ”Langford said.
Raising concerns over global economic recovery, a newly discovered coronavirus strain in Britain has forced a number of countries around the world to close their borders to the UK and drug dealers for test their COVID-19 vaccine against him.
Gold has climbed 22.9% so far this year behind major stimulus measures to support pandemic economies, as it is seen as a hedge against inflation that is likely to be the result of such stimulus and benefits from low interest rates that reduce its opportunity cost. .
Gold will regain its historical relationship with real yields, and real yields are likely to continue to fall so there is no reason to think that gold cannot push another for $ 2,000 next year. if this trend exists, IG Market analyst Kyle Rodda said.
Silver rose 0.8% to $ 25.31 an ounce. Platinum rose 0.1% to $ 1,002.86 and palladium gained 0.2% to $ 2,318.23.
Reporting by Nakul Iyer in Bengaluru; Edited by Subhranshu Sahu, Aditya Soni