Gold resumes gains as dollar continues to drop

Gold prices rose on Thursday, to resume gains after taking a breather yesterday, heading towards the third daily gain in 4 days, as the US dollar fell against a basket of currencies.

Gold rose 0.75% to $1,900.29, after opening at $1,886.23, and hit a low of $1,884.68.

The yellow metal closed lower by 0.6% yesterday, posting the first daily loss in 3 days, as most global stocks rose.

The dollar index fell against a basket of major currencies today by 0.2%, to deepen its losses for the fourth straight day, and hit a 1-week low of 93.62 points, which lifts the prices of dollar-denominated metals and commodities.

The US dollar fell as demand slowed due to improved risk appetite, as hopes for a new fiscal stimulus in the US were renewed.

President Donald Trump's administration has proposed a $1.5 trillion stimulus package in the House of Representatives, which comes within the ongoing talks between the two parties to find a compromise on the new Covid-19 relief package.

Gold stocks at the SPDR ETF remained unchanged yesterday at a total of 1,268.89 metric tonnes.