Gold hits two-month peak as investors brace for US Senate runoffs

prices hit a two-month high on Tuesday, lifted by a lacklustre dollar as investors awaited the US Senate runoffs in Georgia that will determine which party controls Congress and prospects of additional fiscal stimulus.

Spot was up 0.12 per cent to $1,946.52 per ounce by 9.16 pm IST, after hitting its highest since November 9 at $1,947.96.

“Much will depend on the outcome of the runoff elections in the state of Georgia in the US and there are certainly hopes among market participants that the Democrats are to win both seats in the elections,” Commerzbank analyst Daniel Briesemann said.

“This would mean that the newly elected US president Biden can pursue his announced expansionary fiscal policy, which would benefit

The dual runoff elections in Georgia will decide which party controls the US Senate and influence future fiscal policies.

Underpinning gold, Britain went into a new national lockdown to contain a surge in Covid-19 cases, while New York registered its first case of the more contagious variant of the coronavirus found in the UK.

The dollar index hovered close to April 2018 lows, making bullion cheaper.

In other metals, silver rose 0.7 per cent to $27.40 and palladium gained 0.8 per cent to $2,392.23.

Platinum was up 0.2 per cent to $1,071.62, having hit a more than four-year high of $1,127.82 on Monday.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor