Gold prices firmed on Monday, bolstered by a weaker dollar and hopes of more coronavirus stimulus measures under U.S. President-elect Joe Biden.
Spot gold rose 0.3% to $1,956.57 per ounce by 0319 GMT. On Friday, it hit $1,960.13, the highest since Sept. 17.
U.S. gold futures gained 0.3% to $1,956.60 per ounce.
“Prospects of more stimulus is keeping gold supported and has pushed the dollar down,” said Howie Lee, economist at OCBC Bank. The dollar index hit a 10-week low on Monday.
“This could be the beginning of a longer bull run (for gold).”
Democrat Biden crossed the threshold of the 270 electoral college votes required for victory on Saturday. Republicans appear to have retained control of the Senate, though the final makeup may not be clear until runoff votes in Georgia in January.
“A divided Senate would suggest that it will be difficult to get those (fiscal stimulus) through. So, there’s probably still a little bit of hesitation,” said ANZ analyst Daniel Hynes.
“But that will likely see the Federal Reserve come to play with more monetary stimulus measures.”
Unprecedented money printing and low interest rates globally has set gold on track for its best year in a decade, given its appeal as a hedge against inflation and currency debasement.
Since the economic backdrop is being driven by the pandemic, investors are going to continue to see low interest rates and a weaker U.S. dollar, and that should help gold perform relatively well, Hynes added.
Global coronavirus infections surpassed 50 million on Sunday, according to a Reuters tally.
On the technical front, spot gold may rise to $1,975, having cleared resistance at $1,951, according to Reuters technical analyst Wang Tao.
Silver rose 0.7% to $25.77 per ounce. Platinum gained 1.2% to $899.49, while palladium fell 0.4% to $2,479.81.