Gold futures traded higher on Tuesday as the precious metal struggled to recover from a weekly loss that sent the precious metal to its lowest settlement in seven weeks.
Trading for bullion contrasts with a softer U.S. dollar background, as measured by the ICE DXY US Dollar Index,
The index fell 0.3% at 90.52 early Tuesday.
A weakening dollar is seen strengthening the appeal of assets at the price of the currency as gold.
GC00 February Gold,
GCH21,
it climbed $ 9.50, or 0.5%, to trade at $ 1,839.40 an ounce, after a 1.2% decline on Friday helped drive gold to its lowest limit since Dec. 1 and a weekly slide of 0.3%.
“Gold is going higher, continuing the reversal after the rapid crash that brought the price close to the $ 1,800 support range,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades.
A softer dollar also came as Janet Yellen, President Joe Biden ‘s choice to run the Treasury, said in prepared remarks that the U.S. must “be big” to counter the economic damage from COVID- 19.
“But right now, with interest rates at historic levels, the quickest thing we can do is be great,” Yellen wrote in evidence prepared for delivery for her confirmation hearing before the Scottish Finance Committee. -Senate Tuesday.
Her comments come after Biden last week introduced a coronavirus relief plan with a $ 1.9 trillion price tag, a widespread measure that includes cash payments to Americans and money to roll out COVID-19 vaccines.
Gold prices are expected to rise in the long run amid more government spending and a weak buck.
Elsewhere in metals, silver for delivery in March SIH21,
SI00,
rose 44 cents, or 1.8%, to $ 25.31 an ounce, after falling 0.9% last week.