Gold tries recovery from 4-month low as dollar slides

Gold prices rose on Wednesday, for the first time in 3 days, within recovery attempts from a 4-month low, while the US dollar fell against its peers, but gold's gains are still ebbed by the improved risk appetite in markets.

Gold prices rose 0.4% to $1,815.13 an ounce, after opening at $1,807.78, and hit an intraday low of $1,801.57.

The yellow metal lost 1.7% yesterday, posting its second straight daily loss, and hit a 4-month low of $1,800.21, on weak safe-haven demand.

The dollar index fell by 0.3% today, deepening its losses for the second straight day, and dropped to a 12-week low of 91.94 points, which lifts the price of gold and other dollar-denominated metals.

The US dollar is weighed down by strong market sentiment, as a result of successive positive news about the Covid-19 vaccines, in addition to the easing of political tensions in the US over the presidential election results.

President Donald Trump on Monday gave the green light for the transition of power to the president-elect Joe Biden's team, and ordered his current team to cooperate with the new administration, which is considered as Trump's official conceding of the election, despite his comments of continuing the legal fight on the results.

John Biden is planning on appointing former Federal Reserve Chair Janet Yellen as Secretary of the US Treasury, which boosts odds for further fiscal and monetary stimulus to support the US economy amid the coronavirus crisis.

Gold stocks at the SPDR ETF fell 13.43 metric tonnes yesterday, in the largest daily drop since March 20, with the total at the lowest level since July 7 of 1,199.74 MT.