Gold rises on softer dollar, U.S. stimulus hopes

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Spot gold rose 0.3% to $1,898.31 per ounce by 0054 GMT.
U.S. gold futures were up 0.4% at $1,902.60.
The dollar index was on track for a second consecutive weekly decline.

Gold prices edged higher on Friday, supported by a weaker dollar and optimism over a new U.S. coronavirus relief aid after President Donald Trump said talks with Congress have restarted.

Fundamentals

Spot gold rose 0.3% to $1,898.31 per ounce by 0054 GMT.

U.S. gold futures were up 0.4% at $1,902.60.

The dollar index was on track for a second consecutive weekly decline.

In an interview, Trump said there was a good chance a deal over Covid-19 relief could be reached, but gave no other details about a possible agreement.

House of Representatives Speaker Nancy Pelosi said legislation to help airline companies survive the fallout from the pandemic could only move through Congress with guarantees that a comprehensive aid bill would be developed too.

Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.

Trump’s physician said on Thursday that the U.S. president had completed his course of therapy for Covid-19, had remained stable since returning to the White House and could resume public engagements on Saturday.

Gold-backed exchange traded funds added more than 1,000 tonnes of bullion worth $60 billion at current prices to their stockpile in the first nine months of 2020, driving a sizzling price rally, the World Gold Council said.

The world’s central banks sold more gold in August than they bought, the WGC said, ending a year-and-a-half-long run of monthly gold accumulation and helping stall a rapid rise in gold prices.

Silver rose 0.4% to $23.93 per ounce, platinum gained 0.6% to $867.06, and palladium was up 0.3% to $2,379.29.

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