19.01.202109:35:00UTC+00Gold Gains Ground On Dollar Weakness

Gold prices rose on Tuesday as the dollar weakened on optimism about China's economy and hopes for further global stimulus.

Spot gold edged up 0.3 percent to $1,843.13 per ounce, after having hit it's lowest since Dec. 2 at $1,809.90 hit on Monday. U.S. gold futures were up 0.7 percent at $1,841.90.

Data released on Monday showed that China's economy gathered momentum towards the end of 2020.

After suffering a 6.8 percent contraction in the first three months of the year, China's economy notched three quarters of progressively stronger gains. The country finished the year with better-than-expected growth of 6.5 percent in the last three months of the year.

China is predicted to experience a V-shaped recovery, whereas other major economies experience a W- or a U-shaped recovery.

Janet Yellen will appear before the Senate Finance Committee for her confirmation hearing as U.S. Treasury Secretary later in the day and she is likely to urge the federal government to "act big" to ramp up the recovery.

Meanwhile, the inauguration of President-elect Joe Biden is due on Wednesday. Biden has set an ambitious goal of 100 million Covid vaccinations and mandating everyone to wear a mask to address the pandemic in his first 100 days in office.