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Gold rose after US President Joe Biden announced details of the stimulus package and Fed Chairman Jerome Powell said support for monetary policy would continue.
Biden will present the $ 1.9 trillion fiscal stimulus package to Congress for approval, but Republicans can oppose the package because the vast majority of spending is reserved for Democratic priorities such as state aid or aid to local governments.
On the other hand, Powell noted that “now is not the time” for debate, although he said it is still too early to squeeze the Fed’s huge asset program. Powell also said that the policy rate will not be raised anytime soon and will signal make it clear to policymakers when the asset purchase program will be scaled down.
belowBoth gains may be limited by higher bond yields and the appreciation of risk assets, but the weakening of the US dollar, stimulus package expectations and low real interest rates will continue to support prices. Developments related to the asset purchase program will be suppressive news this year.
Daniel Hynes and Soni Kumari, Commodity Strategists, Australian and New Zealand Banking Group
As investors focus on bond rates and Fed statements as we move towards the close of the week, gold is preparing to close this week with little price change.
Gold prices fell 0.37 percent at 07:59 UTC to $ 1,853.40 an ounce, while the Bloomberg Dollar Spot Index was up 0.1 percent.
How was 2020 for gold? What will 2021 be like?
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