Gold tries to recover from 4-month low ahead of Jerome Powell's testimony

Gold prices rose on Monday, in recovery attempts from the 4-month low that was hit yesterday, as the US dollar fell against its peers, ahead of Federal Reserve Chairman, Jerome Powell's congressional testimony.

Gold prices rose 1.9% 1,810.15 an ounce, after opening at $1,777.35, and hit an intraday low of $1,775.64.

The yellow metal lost 0.6% yesterday, falling for the second straight day, and hit a 4-month low at $1,764.45, on positive news about the Covid-19 vaccines.

The American company Moderna announced on Monday that its vaccine was 100% effective at preventing severe COVID-19 in the final analysis of the third and final stage of clinical trials.

Gold also lost 5.5% during November, and posted its fourth straight monthly loss, and the biggest monthly loss since November 2016 due to weak safe-haven demand and a strong sentiment in most global financial markets.

The dollar index fell 0.3% today, falling near the lowest level in two and a half years at 91.50 points.

Demand for the US dollar weakened due to optimism about Covid-19 vaccines, while the political tensions eased in the US over the presidential election.

At 15:00 GMT, Federal Reserve Chair Jerome Powell is due to testify on the CARES Act before the US Senate Banking Committee.

Gold stocks at the SPDR ETF remained unchanged yesterday, for the third day in a row, with the total at the lowest level since July 2 of 1,194.78 MT.