Gold Trades Stronger as US Dollar Slides Lower – Stimulus News Supports

Gold prices continue their climb higher as the US dollar trades weaker after the approval of the coronavirus relief package and the

Arslan Butt•Tuesday, December 29, 2020•1 min read

Gold Trades Stronger as US Dollar Slides Lower - Stimulus News Supports

Early on Tuesday, gold prices continue their climb higher as the US dollar trades weaker after the approval of the coronavirus relief package and the confirmation of even bigger stimulus checks. At the time of writing, GOLD is trading at a little above $1,876.

The US dollar has turned bearish over the past few sessions on account of an improvement in the market sentiment after the signing of the Brexit deal between Britain and the EU, with only a few days to go until the end of the transition period. Earlier this week, US President Donald Trump signed the coronavirus relief bill, giving markets one more reason to cheer, driving further weakness in the greenback.

Analysts expect gold to make more gains, benefiting from the weaker dollar in the coming sessions even as concerns about the economic impact of the coronavirus pandemic lend support to its safe haven status. After the UK announced the discovery of more contagious strains of coronavirus and several countries worldwide imposed tighter restrictions on flights, parts of Africa and Europe have reported a spike in hospitalizations.

Despite the rollout of the COVID-19 vaccine, it will take considerable time for the pandemic to be brought under control and for the global economy to work its way towards recovery. As a result, the outlook for gold remains bullish as countries reel under economic downturn due to the pandemic and lockdown measures.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.