Gold Rises As Dollar Weakens Despite Delayed U.S. Stimulus Vote
Gold prices gained on Wednesday as the dollar weakened, with investors looking past a top U.S. Republican leader’s decision to postpone a Senate vote on increased pandemic relief payments.
Spot gold rose 0.2% to $1,881.62 per ounce by 0548 GMT. U.S. gold futures were up 0.2% at $1,886.20.
“A weaker dollar is enough to create a small upward momentum for confidence to be maintained in gold,” said Michael Langford, director at corporate advisory AirGuide.
The dollar index hovered close to a more than two-year low, as traders shrugged off Republican Senate Majority Leader Mitch McConnell’s decision to put off a vote on increasing COVID-19 relief checks to $2,000.
Langford said $2,000 stimulus checks would most likely go through and that would be a positive for gold, adding that the metal needed an unexpected catalyst to see significant upside.
