Gold prices advance on US stimulus hope
- 26 Jan 2021
Gulf Today Report
Gold prices rise on Tuesday as expectations of a large US stimulus package uplifting the metal’s appeal.
Spot gold rose 0.1% to $1,856.33 per ounce while US gold futures gained 0.1% to $1,856.80.
Chief global market strategist at Axi Stephen Innes said: "if we get the stimulus, gold can break through $1,900."
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Aiding the rise of gold is the US 10-year Treasury yields hanging near a three-week low. However, the jump of the dollar by 0.1% is has made gold expensive for other currency holders.
Investors are keeping an eye on the tone of the Fed as it is expected they will stand pat on monetary policies.
"If the Fed signals that they're not looking to expand stimulus, and puts the seeds out there that they might have to consider exiting sooner than they currently think ... that could be very detrimental for gold," said DailyFX currency strategist Ilya Spivak.