Gold rises 2% to close above $5,000

April gold futures gained 1.65% to $5,062.1 an ounce

Gold and silver prices rose on Monday, supported by a weaker dollar as investors continued to shy away from US assets, alongside expectations that the Japanese government will implement fiscal stimulus measures.

Gold futures for April delivery climbed 2%, or $99.6, to $5,079.40 per ounce, closing above the $5,000 level for the first time in more than a week.

As for silver, March futures for the white metal jumped 6.9% to $82.23 per ounce, recovering part of the losses it suffered after entering bear-market territory on Jan. 30.

The gains were supported by a decline in the US currency, with the dollar index — which measures the greenback against a basket of six major currencies — falling to 96.837 points during the session, near its lowest level in four years.

Expectations of Japanese fiscal stimulus following the ruling party’s victory in parliamentary elections, as well as reports that China’s central bank has instructed local banks to reduce their holdings of US. Treasury bonds, also boosted demand for gold and weighed on the dollar.