Spot gold prices strengthened 0.5% to US $ 1,876 per ounce troi this afternoon

ILLUSTRATION. Spot gold price up 0.5%

Reporter: Anna Suci Perwitasari | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – TOKYO. Gold prices rebounded after being at the lowest level in one month at the start of trading today. However, gold prices this month still posted their worst monthly performance since 2019.

Friday (30/10) at 11.00 WIB, spot gold prices rose 0.5% to the level of US $ 1,876.76 per troi ounce. Meanwhile, the price of gold futures for December 2020 delivery rose 0.5% to US $ 1,876.6 per troi ounce.

Gold prices regained strength after the United States dollar index (US), which previously dragged gold prices, began to weaken.

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This week, market players seem to rely more on the US dollar as a hedging asset than gold. This was done because the potential for additional Covid-19 assistance packages in Uncle Sam’s country before the presidential election faded away.

As a result, investors have begun to look to the US dollar as a hedge. It can be seen that the US dollar index is stable in the area during the month which it touched in the previous trading session. This makes the greenback are on track for the best week since last September despite seeing a slight dip.

Negative sentiment for gold also came after President Donald Trump’s Chief Economic Adviser said any agreement on a coronavirus aid law would await the right time.

As a result, the Democrat Party’s plan in the Senate that wants a Covid-19 stimulus can take effect before the presidential election runs aground.

Not to mention, the US economy is growing at a historic pace in Q3 2020 after the government injected more than US $ 3 trillion in pandemic aid that fueled consumer spending, but the effects of the Covid-19 recession are likely to last longer.

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The European Central Bank also committed on Thursday to take fresh action in December to contain the growing impact of a second wave of coronavirus infections, possibly in the form of more bond purchases or cheap credit for banks.