Gold Climbing as The Democratic Leadership of the US Senate Supports Stimulus Hopes

Gold prices rose Thursday, January 7th, as a democratic sweep of the re-election in Georgia boosted expectations of additional US stimulus, although the rise in Treasury yields curbed the yellow metal to below a two-month high it reached in the previous session.

Gold advanced in spot transactions to more than $1900 an ounce during the session. And US gold futures rose 1% to 1927 dollars.

Prices have fallen to more than 2% after reaching the highest level since the ninth of November on Wednesday, as US Treasury yields jumped over ten years by more than 1% for the first time since March.

Inflation expectations rose in the United States, anticipating more stimulus after the Democrats won control of the Senate after a two-seat run-off victory in Georgia.

Many investors consider the yellow metal, which does not yield a return, as a hedge in the face of inflation and a depreciating currency, which are what investors fear will result from the greater stimulus measures.

Gold’s advance was curbed by US bond yields remaining above 1%, which helped the dollar recover from its lowest level in several years. The rise in the dollar increases the cost of gold for holders of the rest of the currencies.

As for the other precious metals, silver has dropped to more than $ 27 an ounce. Platinum rose to $ 1,104, while palladium rose to $ 2,454.