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
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.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.