Gold rises on political frictions, weaker dollar

Gold rises on political frictions, weaker dollar

04 Jun 2020 10:55 AM
 

Gold prices gained from last session's fall on lingering political tensions and a weaker dollar but were still near their lowest in over a week as equities were set to extend their gains on economic optimism.

Spot gold rose 0.4% to $1,703.67 per ounce, as of 7:42 am. On Wednesday, it fell by 1.7% to reach its lowest since May 27. 

U.S. gold futures were flat at $1,704.90.

The European Central Bank is certain to give more stimulus, with the only question being timing- whether later on Thursday or holding out until July. More stimulus and lower interest rates tend to benefit gold, which is often seen as a hedge against inflation and currency debasement.

The dollar index has fallen about 1% this week, making gold cheaper for holders of other currencies.

The U.S. is expected to impose restrictions on at least four additional state-run Chinese media outlets, sources said on Wednesday. U.S. President Donald Trump's administration on Wednesday barred Chinese passenger carriers from flying to the United States starting on June 16.