Gold Price continued its motion in the initial session of trading on Thursday after hitting the benchmark of $2,000 the previous week. The ongoing weakness in the dollar is working as the ice on the cake. The dollar fell once again, supporting the increase in the gold price.
As per the data, it rose by 0.14% at 10:16 PM ET (3:16 AM GMT).
The head of commodity strategies (TD) Bart Melek told CNBC that the yield curve of the US is dropping, the US dollar is declining, and the increasing expectation of inflation. All these factors are indicating that the opportunity cost of gold holding will decrease soon.
The political and economic uncertainty are equally supporting this surge.
Negotiation on COVID-9 package is still going on in the US. A compromised framework was discussed on Wednesday about this aid-package. It includes additional unemployment payment of $400 per week. President Donald Trump announced that he is serious about the package and is ready to pass executive orders on items in case no notable progression is made by Friday.