Gold Supported As Dollar Slumps

Published on Dec 30, 2020 11:48

Gold witnessed a very choppy movement as global markets saw thin moves and sentiments in the yellow metal turned lax after prices eased from one week high above $1900 per ounce. However, the US dollar index fell under 90 mark and currently lingers at 89.70, down 0.20% on the day, keeping Gold broadly supported. COMEX Gold futures currently trade at $1888 per ounce, up 0.30% on the day right now.

The focus is likely to turn on the continued slide in the US dollar following the Covid-19 stimulus by the US and concurrent impact in other currencies. The People`s Bank of China (PBOC) stated yesterday that it will make monetary policy flexible, targeted and appropriate and added that it will keep the yuan exchange rate basically stable, media reports noted. Major economies will be keeping a track of the movement in the US dollar and Gold would benefit from a secular debasement in currencies.