Gold is still perceived as a safe haven amid the pandemic
Gold received additional scrutiny last week after the US Federal Reserve announced its move to inflation targeting. This approach of the central bank means abandoning preliminary interest rate hikes to contain inflationary risks. The change is considered positive for gold, which is popular as an inflation hedge.
The demand for gold is also driven by expectations that interest rates will remain low in the United States and many other economically developed countries. In addition, gold is supported by a weaker dollar.
Gold will continue to be one of the main beneficiaries of the dollar's weakening, and therefore another test of the strength of levels above $ 2,000 per ounce can be expected in the coming weeks, says Hussein Sayed, chief market strategist at FXTM.
December gold futures rose 0.2%, or $ 3.7, to $ 1978.6 an ounce. December silver futures rose 2.3%, or 80.4 cents, to $ 28.594 an ounce. Hopes for some recovery in economic activity and for cures for coronavirus infection were also supported by precious metals.
The ICE Dollar Index is down approximately 0.15%.
Last week, gold was up 1.4%, while silver was up about 4% in the most actively traded contracts, according to Dow Jones market data. At the end of August, gold fell 0.5%, while silver rose 16%.