Gold Finds Support From Weakening Dollar

Gold Finds Support From Weakening Dollar Gold finds support from the weakening dollar. With the effect of tightening quarantine measures, gold was traded at the highest levels in the last 8 weeks. The increase in new types of coronavirus (Covid-19) cases all over the world made the importance of new quarantine inevitable. In the chain of restrictions, especially in England, a third curfew was declared. British Prime Minister Boris Johnson has approved the national quarantine that will start on Monday and last until mid-February. It was informed that the coronavirus mutation that emerged in the UK was also seen in New York. As a result of these developments, gold is on the rise once again. In addition to the number of coronavirus cases, the weakening of the US dollar and the fall in the US real interest rates also contributed to the rise of gold. In this context, gold prices were traded at their highest levels in the last 8 weeks. With the increasing number of coronavirus cases and the hardening of quarantine measures after the Christmas and New Year holidays, the economy is expected to slow down again. On the matter, Craig Erlam, Senior Market Analyst at Oanda, says: “With the weakening dollar, gold prices started the new year at over $ 1,900. Another rise towards $ 2,000 is only a matter of time.” Since the first day of the week showed an increase by 2.16 percent in gold prices, gold traded around 1939.39 per ounce on Tuesday.