Gold prices rise on hopes of recovery in the United States of America
Gold prices surged higher on Monday as investor attention shifted back to the prospect of a substantial US stimulus package, which made bullion more attractive as a hedge against inflation.
Spot gold continued to rebound from last week’s slowdown, rising 1.2% to $ 1,834.05 an ounce at 11:35 a.m. EST. US gold futures also rose 1.4% to $ 1,839.20 an ounce in New York.
“Gold is getting its strength from renewed optimism about US stimulus packages and rising inflation expectations,” Lukman Otunuga, senior research analyst at FXTM, told Reuters.
“The metal continues to be pulled and pulled by competing forces, and while the gold bulls remain protected by ‘reflation trade’, stimulus hopes continue to boost market mood and general sentiment in the market. risk, ”added Otunuga.
Gold’s gains came despite a slightly higher dollar, making bullion more expensive for buyers of other currencies. Meanwhile, global stocks hit a record high on Monday in hopes that the $ 1.9 trillion aid package will be passed by U.S. lawmakers as early as this month.
Limiting the rise in gold, benchmark 10-year Treasury yields have moved near their highest since March of last year, raising the opportunity cost of holding non-performing bullion.
Silver, the sister metal of gold, which has been the subject of a Reddit-fueled retail investment frenzy for more than a week, also rose 2.0% to $ 27.44l ounce thanks to renewed hopes of recovery.
