Gold Reaches Its Highest Level in Two Weeks Due to Pressure From US Stimulus Hopes

Gold rose Thursday, January 21, to its highest level in nearly two weeks, with the dollar retreating due to hopes for more stimulus after the new US administration headed by Joe Biden took power, although some profit-taking limited the gains of the precious metal.

Spot gold rose 0.1% to $ 1873.36 an ounce, after hitting its highest level since January 8th at $ 1874.50 an ounce earlier in the session. And gold gained 1.7% on Wednesday.

Gold futures rose 0.3% to $ 1871.70 an ounce.

The Bank of Japan kept its monetary policy unchanged on Thursday and investors are now awaiting the European Central Bank’s monetary policy decision at 12:45 GMT on Thursday.

The market is also focused on Biden’s $ 1.9 trillion stimulus plan, as it prepares to start dealing with the Covid-19 pandemic, which has killed more than 400,000 Americans and turned the world’s largest economy upside down. Gold is considered a hedge against inflation that may result from stimulus measures.

The dollar index fell 0.2% against competing currencies, and the yield on the benchmark ten-year US Treasury bonds also consolidated at less than the ten-month high it reached last week.

As for the other precious metals, silver increased 0.3% to $ 25.87 an ounce. Platinum fell 0.1% to $ 1108.28 an ounce. Palladium rose 0.4% to $ 2,381.15 an ounce.