Gold hits two-week high as investors eye fresh fiscal support

By Shreyansi Singh (Reuters) - Gold rose to a two-week high on Tuesday, buoyed by growing expectations of more U.S. fiscal stimulus to combat the economic impact of rising coronavirus cases, while a muted dollar added further support

Reuters December 09, 2020 00:06:11 IST
Gold hits two-week high as investors eye fresh fiscal support

Gold hits twoweek high as investors eye fresh fiscal support

By Shreyansi Singh

(Reuters) - Gold rose to a two-week high on Tuesday, buoyed by growing expectations of more U.S. fiscal stimulus to combat the economic impact of rising coronavirus cases, while a muted dollar added further support.

Spot gold gained 0.3% to $1,868.97 per ounce by 11:55 a.m EST (1655 GMT). Earlier, it touched its highest since Nov. 23 of $1,875.07.

U.S. gold futures were up 0.4% at $1,873.50.

"We are not too far away from the highs, and once we start getting stimulus or a clearer picture of how this is all going to play out, gold and silver will continue to move higher," said Daniel Pavilonis, senior market strategist at RJO Futures.

Raising gold's appeal for other currency holders, the dollar index stalled its slide, but was still close to multi-year lows.

Amid mounting coronavirus cases, the U.S. Congress will vote this week on a one-week stopgap funding bill to provide lawmakers more time to reach a deal on COVID-19 relief.

"Further fiscal spending is positive for gold, and the market appears to be anticipating some type of fiscal package passage, even if only temporary," James Steel, chief precious metals analyst at HSBC, said in a note.

But while a broadly defensive dollar, negative real rates and a "merciless rise in COVID-19 cases" are positive for gold and silver, "more good news on the vaccine front would be a powerful negative."

Gold, considered a hedge against inflation and currency debasement, has risen more than 23% this year, benefiting from near-zero interest rates and the risk of higher inflation likely to result from massive stimulus globally.

Meanwhile, Britain began its vaccination against COVID-19 on Tuesday.

Silver rose 0.1% to $24.54 per ounce, while palladium fell 0.7% to $2,316.10 and platinum was up 0.3% at $1,024.52.

(Reporting by Shreyansi Singh in Bengaluru; editing by Jonathan Oatis and Andrea Ricci)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Republicans face growing corporate backlash after Capitol assault
World

Republicans face growing corporate backlash after Capitol assault

By Andy Sullivan and David Shepardson WASHINGTON (Reuters) - Republicans in the U.S. Congress faced growing blowback on Monday from businesses that said they would cut off campaign contributions to those who voted last week to challenge President-elect Joe Biden's victory. The announcements by Dow Inc., AT&T Inc.

Guardians of Congo's gorillas unbowed as ambushed colleague is buried
World

Guardians of Congo's gorillas unbowed as ambushed colleague is buried

By Djaffar Al Katanty GOMA, Congo (Reuters) - A line of Congolese park rangers raised their guns in salute on Monday as the coffin bearing their colleague Burhani Abdou Surumwe, a 30-year-old father of four, was buried in the black volcanic soil of a Muslim cemetery outside Goma.

COVID-19 fuelling education's tech disruption, deepening digital divide
World

COVID-19 fuelling education's tech disruption, deepening digital divide

TORONTO/NEW YORK (Reuters) - The COVID-19 pandemic deepened inequities in accessing and benefiting from education but the future of learning could be a more equal one, participants told Reuters Next panels on Monday.