⁍ Spot gold gained 0.6% to $1,917.76 per ounce by 0323 GMT, having earlier hit a one-week high.

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⁍ The White House and Democrats in the U.S. Congress moved closer to agreement on a fresh stimulus package.

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⁍ The news lifted risk appetite and sent the dollar index to a one-month low against a basket of major currencies.

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– Gold prices rose on Wednesday as optimism that US lawmakers could reach agreement on a pre-election coronavirus relief package pressured the dollar and bolstered the precious metal’s appeal as an inflation hedge, reports Reuters. Spot gold gained 0.6% to $1,917.76 per ounce by 0323 GMT, having earlier hit a one-week high. US gold futures were up 0.4% at $1,922.80. The White House and Democrats in the US Congress moved closer to agreement on a fresh stimulus package on Tuesday as President Trump said he was willing to accept a large aid bill despite opposition from his Republican Party. Talks will continue on Wednesday, an aide to top US Democrat Nancy Pelosi said. The news lifted risk appetite and sent the dollar index to a one-month low against a basket of major currencies. “The falling US dollar is the main contributor to gold’s rise,” said Margaret Yang, a strategist with DailyFx, which covers currency, commodity, and index trading. The pandemic has prompted unprecedented money printing and low-interest rates globally, putting gold on track for its best year in a decade given its appeal as a hedge against inflation and currency debasement. But the precious metal has been rangebound in the past few sessions, hovering near the psychologically important level of $1,900, as investors await developments on the US stimulus deal.