Are Gold Prices Still Rising?
Gold Climbs as Stimulus, Fed and Fresh Lockdowns Support Advance
“Gold advanced after the unveiling of a possible new U.S. spending package, with traders also anticipating fresh guidance on monetary policy from the Federal Reserve at its last meeting of the year.
A bipartisan group of lawmakers delivered details of a $908 billion relief package, splitting it into two parts in recognition of deep differences over state aid and a liability shield for employers. With Joe Biden now confirmed as president by the Electoral College, leaders in Congress need to find a way to get one or both parts through the House and Senate before the last of the relief provisions from earlier stimulus expire at the end of the year.
Bullion’s path in recent weeks has been dominated by developments on vaccines and prolonged stimulus talks in the U.S., with prices set for the first quarterly loss since 2018. Still, the metal may get some support after the Fed meets Tuesday and Wednesday, with markets expecting fresh guidance on asset purchases. In addition, the haven may get a boost from fresh antivirus curbs being rolled out in major economies including Germany and the U.K.
“Prices are looking vulnerable again but should once again be saved by the Fed,” said Edward Moya, senior market analyst at Oanda Corp. “Economic scarring will undoubtedly make it easier for the Fed to continue to provide more accommodation and that could make many traders want to jump back in.”
Spot gold rose 1.5% to $1,853.93 at 1:53 p.m. in London, after a 0.7% drop on Monday. The precious metal has gained more than 22% this year after hitting a record in August. Silver climbed 2.7%, while platinum and palladium also gained. The Bloomberg Dollar Spot Index was down 0.1%.”