Gold prices rose today, Thursday, as an increase in “Covid-19” infections in Europe fueled concerns about the pace of the economy’s recovery, but the rise of the dollar curbed the gains of the yellow metal.
And gold increased in spot transactions 0.1% to 1736.51 dollars an ounce by 0533 GMT. And US gold futures rose 0.2% to $ 1736.50 an ounce.
“At those levels, gold might get some safe haven purchases now, which is a change from what we were seeing only a few days ago,” said market strategist at CMC Markets, Michael McCarthy.
“One of the issues with gold is that there appear to be two camps, one for those who are concerned about new closures in Europe, and another for those who take a very positive view of the economic outlook,” he added, adding that both opposing perceptions support gold reasonably well.
Gold is also considered a hedge against inflation, which is usually lifted by broad-based stimulus aimed at boosting economic growth.
Yesterday, Wednesday, members of the Federal Reserve indicated that the US Central Bank will start raising interest rates, depending on the economic results, and that it will not reduce its easy monetary policy until it witnesses an actual improvement.
Gold’s gains were limited by a jump in the dollar index to a new peak in four months, due to concerns about an extension of economic isolation measures in Europe and a possible increase in taxes in the United States.
As for the other precious metals, palladium fell 0.1% to $ 2,631.91 and platinum rose 0.2% to $ 1,170.
Silver rose 0.2% to $ 25.12, after falling to its lowest level in more than two weeks, recording $ 24.93 earlier in the session.
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