EconomyMarkets

Gold Halts Losing Run as Investors Weigh Dollar, Stimulus Bets By Bloomberg

© Reuters. Gold Halts Losing Run as Investors Weigh Dollar, Stimulus Bets

(Bloomberg) — Gold steadied after the longest run of daily declines since November as investors weighed the impact of a stronger dollar and rise in Treasury yields against expectations for further massive stimulus.

A rebound in the U.S. currency from the lowest level in almost three years, coupled with a surge in 10-year yields, has been weighing on non-interest bearing bullion. President-elect Joe Biden is set to release proposals for a multitrillion-dollar stimulus package on Thursday, which could help to pave the way for a rise in inflation, against which gold is seen as a hedge.

The precious metal has lost ground so far in 2021 after posting its biggest annual gain in a decade on the back of the devastating effects of the pandemic, vast stimulus, and rising haven demand. Now, Federal Reserve officials are saying that more fiscal support and the mass distribution of vaccines could lead to a strong U.S. economic recovery in the second half, setting the stage for a discussion about tapering of bond buying before the year-end.

was little-changed at $1,843.85 an ounce at 9:20 a.m. in Singapore. It sank 5.4% in the past four days. Silver climbed 0.7%, platinum advanced 2.3% and palladium added 0.7%. The Bloomberg Dollar Spot Index was flat after gaining 0.5% on Monday.

Meanwhile in U.S. politics, House Democrats Monday introduced a resolution to impeach Donald Trump for a second time, setting up a vote this week after the riot at the Capitol. The president and his deputy, Mike Pence, have agreed to work together for the remainder of their term, according to an administration official, signaling that Trump won’t resign or face removal by his cabinet.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button