Gold started trading earlier this week by remaining trading high after recording an increase of almost 4% last week.
In the European session, the precious metal continued to maintain its strengthening momentum trading at $ 1,959 per ounce, while gold futures were positive at $ 1,960 per ounce (4.15pm Malaysian time).
At the beginning of the session, the price of gold reached its highest level since mid-September at $ 1,965 per ounce.
The modest gain of the yellow metal has been driven by the hope that Joe Biden's victory as the new president of the United States will lead to more stimulus measures.
Gold tends to benefit from the widespread implementation of stimulus measures as it is considered a hedge against inflation and currency devaluation.
In addition, the market is also expecting a more dovish central bank approach to continue to support the U.S. economy of disagreement in Congress, and it will certainly lead to the depreciation of the US dollar.
Republicans are expected to continue to dominate the Senate following a recent vote that saw the party have a majority majority of Democrats. Efforts for Biden to change policy may be difficult due to this problem.
