COVID-19 drives rise in gold prices

(Photo: Jordan News)
AMMAN - Gold prices rose on Friday, supported by concerns about an increase in COVID-19 infections. However, despite the rise today, the dollar’s strength kept the yellow metal on track to record the second consecutive weekly decline, as reported by Al Ghad.اضافة اعلان

By 06:55 GMT on Friday, gold spot transactions rose 0.2 percent to $ 1756.61 per ounce.

US gold futures rose 0.5% to $1,759.70 per ounce.

“The ongoing turmoil caused by Covid-19 means that it is highly likely that central banks globally will continue to provide stimulus, which will ultimately fuel inflation and raise gold prices in the long run,” said Michael Langford, director at AirGuide Consulting.

He added, “In the short term, we expect gold to consolidate between 1,750 and 1,800 dollars.”

Gold is considered a hedge against inflation, but the US Central Bank's raising of interest rates will increase the opportunity cost of holding the yellow metal, which does not generate returns, while strengthening the dollar.

As for other precious metals, silver gained 0.7 percent to $23.32 an ounce, but it is down about four percent for the week, according to Reuters.

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