Gold Prices Rise Ahead of Chinese New Year

Wed 13 Jan 2021 | 07:07 PM

Taarek Refaat

Global gold prices rose by about $14 during Wednesday's session, with political developments in the U.S., and new imports awaiting the Chinese New Year.

The price stayed positive for the third session, offering an incentive of $4.30 per ounce to new imports with nearly 4 weeks until the world's heaviest gold-buying festival, the Chinese New Year.

The rise in the price of the yellow metal comes, with U.S. bond yields declining from the highest level since March. Economic data revealed that the inflation rate in the US rose by 0.4% over the past month.

Meantime, investors await the announcement of President-elect Joe Biden, a large stimulus plan to face the repercussions of the pandemic, as well as the Democrats' attempt to impeach President Donald Trump.

By the end of trading, the price of gold futures contracts for February delivery rose by 0.8%, or the equivalent of $14, to reach the level of $1858 an ounce. The spot price of the yellow metal increased by 0.2% to $ 1857 an ounce.

During the same period, the main dollar index, which measures the currency’s performance against 6 major currencies, rose 0.2% to 90.29.

Prices have remained $30 an ounce lower for 2021 so far, yet, prices in China, the number one consumer, continue to remain positive.