Gold Hits a Two-Week High at $1,195.50 per Ounce

Gold rose 0.8 percent to trade at $1,195.50 per ounce on Tuesday, according to Reuters, marking the highest price for the metal in two weeks. Gold’s rise can be attributed to the falling US dollar, which makes the metal more attractive to holders of other currencies. The dollar fell as the euro began to recover after the European Central Bank indicated more stimulus measures will occur in the future.

“Movements in the dollar continue to be the major catalyst for moves in gold, with sharp rallies predominantly the result of short-covering,” MKS Capital trader James Gardiner said.

U.S. gold futures rose 1 percent to trade at $1,195.70 per ounce, also representing a two-week high.