Gold prices rise amid weakening dollar

Gold prices on December 23 morning rose amid the weakening US dollar exchange rate against world currencies, Report informs.

Coronavirus concerns are also supporting gold prices.

The price of the February gold futures contract on the New York Comex exchange rose 0.31%, or $5.65, to $1,807.85 per troy ounce.

The dollar index (its exchange rate against a basket of currencies of six countries - the main trading partners of the US) on December 22 dropped by 0.4%, on December 23 - decreased by 0.04%, to 96.04 points. A weaker dollar supports the value of gold, which then becomes more readily available when purchased in another currency.

The continued uncertainty surrounding the coronavirus situation is also generally positive for the prices of gold, which has traditionally been considered a more reliable asset. In a number of countries, there are high rates of infection, which leads to tightening of quarantine restrictions by the authorities.

At the same time, traders in the stock and foreign exchange markets are more inclined to take risks after the strong macroeconomic statistics in the US, as a result, Wall Street stock indices rose 0.7-1.2% on December 22, and the traditionally more reliable dollar was depreciating.