Gold prices rise supported by weak dollar

Gold prices rose, monday, after reaching a 7-month low in the previous session, derived from the weakness of the U.S. dollar.

Spot gold rose 0.5% to $1,791.50 an ounce by 0733 GMT, after touching its lowest level since July 2 at $1,759.29 on Friday. U.S. gold futures gained 0.6% to $1,787.70.

The dollar hit a multi-year low against the pound and rival currencies on Monday, but the yields of benchmark US Treasury bills hit a one-year high, increasing the opportunity cost of acquiring gold that does not yield returns.

Apart from a $1.9 trillion aid package to mitigate the u.S. corona’s fallout, which is expected to be approved by the end of the week, investors are awaiting testimony from Federal Reserve Chairman Jerome Powell in the semi-annual monetary report to Congress from Tuesday.

For other precious metals, silver gained 0.6% to $27.38 an ounce, while platinum rose 0.2% to $1,276.92.

Palladium rose 1% to $2,403.08, having earlier hit an earlier high of more than a month at $2,431.50.