Gold Prices Rise As Risk Aversion Mounts

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Gold prices rose on Tuesday, rebounding from a near six-week low hit in the previous session, reflecting the political uncertainty in Washington and rising coronavirus cases worldwide.

Spot gold rose a little over 1 percent to $1,862.40 per ounce, after having touched its lowest since Dec. 2 on Monday. U.S. gold futures were up 0.6 percent at $1,862.15.

U.S. President Donald Trump has approved an emergency declaration for Washington, D.C. due to the conditions resulting from the 59th Presidential Inauguration from January 11 to January 24.

Amid threats of further violence, President-elect Joe Biden said he is not worried about holding his inauguration in front of the U.S. Capitol.

As countries struggle with the pace of vaccinations, the overall global coronavirus caseload has topped 90.8 million and the deaths surged to more than 1.94 million, according to the Johns Hopkins University.

Gold is also benefiting from worsening U.S.-China tensions and expectations of fresh stimulus to be announced by U.S. President-elect Joe Biden.

Biden has called for a $2000 “stimulus checks” to his fellow Americans as he prepares to assume the presidency on January 20.

“$600 is simply not enough when you have to choose between paying rent or putting food on the table,” Biden said on Sunday.

As the U.S. continues to blacklist dozens of Chinese companies, Beijing responded by announcing new rules to protect its firms from “unjustified” U.S. sanctions.

The United States is lifting “self-imposed restrictions” on contacts between American and Taiwanese diplomats and officials.

The material has been provided by InstaForex Company – www.instaforex.com

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