Gold Stays Well Supported After Breaking Above $1800 Per Ounce

Published on Dec 07, 2020 12:46

Gold stayed well supported last week after a break above $1800 per ounce mark. Sentiments were supported overall as weakness in US dollar helped propel it to a one and half week high of $1848 per ounce. The US fiscal stimulus bill talks pulled US dollar index well under 91 mark and kept Gold elevated. The metal hit one and half week high near at $1850 per ounce. Meanwhile, rising global food prices are also keeping buyers interested in Gold. The FAO Food Price Index (FFPI) averaged 105.0 points in November 2020, up 4.0 points (3.9%) from October and 6.4 points (6.5%) higher than its value a year ago. The November increase did not only mark the biggest month-on-month rise since July 2012, but it also resulted in the index reaching its highest level since December 2014.