Gold Rising as US Dollar Was Negatively Affected by The Progress of The US Stimulus

Gold prices reached a week high on Thursday, December 14th, as progress in reaching an agreement on fiscal stimulus in the United States pressed the dollar, while the yellow metal received more support thanks to the US Federal Reserve’s pledge to keep interest rates low until the economy recovers.

In spot transactions, gold rose 0.3% to $ 1869.36 an ounce, after hitting a one-week high of $ 1870.11 earlier in the session. US gold futures rose 0.7% to $ 1871.60.

On Wednesday, negotiators in the US Congress held discussions on the details of a $900 billion aid bill to mitigate the repercussions of Covid-19, which is expected to include the disbursement of stimulus checks of between $600 and $700 and the extension of unemployment benefits, which pushed the dollar to its lowest level in more than two years.

On Wednesday, the Fed pledged more explicitly to continue its bond-buying program until there is significant progress in restoring full employment and reaching the 2% inflation target.

Investors are currently awaiting a policy decision from England, due by 12:00 GMT, as the Fed is expected to refrain from providing further stimulus.

As for the other precious metals, silver rose 0.4% to $ 25.44 an ounce. Platinum gained 0.8% to $ 1042.53, and palladium rose 0.6% to $ 2339.70.