Gold Rises on Hopes of US Stimulus and Central Accommodative Policy

Gold rose as the appetite for the yellow metal as a hedge against inflation was strengthened thanks to a large US package to mitigate the repercussions of Covid-19, while prices also received support thanks to a stance that tends to facilitate monetary policy on the part of the Federal Reserve (US Central Bank).

Spot gold rose 0.1% to $ 1848.75 an ounce, while US gold futures settled at $1,851.

However, he said that the movement of gold prices is witnessing a state of stability and does not show any indications of an attempt to breach towards the upside.

US President-elect Joe Biden unveiled a proposed stimulus package worth $ 1.9 trillion on Thursday to stimulate the economy and speed up immunization operations with anti-Coronavirus vaccines.

Fed Chairman Jerome Powell said on Thursday that he saw no justification for deviating from the central bank’s monetary easing policy, given that the US economy is still far from its targets for inflation and employment.

The easing of monetary policy adds pressure on government bond yields and benefits gold that does not yield a return.

The US benchmark 10-year Treasury yield fell after touching a 10-month high earlier in the week while Asian stocks rose.

As for the other precious metals, silver fell 0.4% to $ 25.41 an ounce. Platinum fell 1.8% to $ 1,098.42, but is up 3% since the start of the week, while palladium fell 1.1% to $ 2,383.11.