* Dollar index hits four-week high
* Treasury nominee Janet Yellen to say U.S. does not seek
weaker
dollar
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa
By Shreyansi Singh
Jan 18 (Reuters) - Gold inched away from a 1-1/2-month low
touched earlier on Monday as expectations of additional fiscal
stimulus in the United States buoyed bullion's appeal as an
inflation hedge.
Spot gold was up 0.5% at $1,835.96 per ounce by 12:29
p.m. EST (1729 GMT) after falling to $1,809.90, its lowest since
Dec. 2. U.S. gold futures rose 0.4% to $1,836.50.
"This new (U.S.) government will provide more economic
stimulus and also the policy of the U.S. Federal Reserve is
unlikely to become more hawkish going forward," said Commerzbank
analyst Eugen Weinberg.
"Therefore we are likely to see continued support for gold
prices."
U.S. President-elect Joe Biden laid out a $1.9 trillion
stimulus plan last week to aid the economy and ramp up the
rollout of vaccinations against COVID-19.
Fed Chair Jerome Powell said on Thursday there was no reason
to alter the central bank's accommodative stance given the depth
of economic problems due to the pandemic.
Gold is considered a hedge against inflation and currency
debasement that can result from widespread stimulus.
However, Commerzbank's Weinberg said a stronger dollar,
economic optimism and concerns about Janet Yellen as the U.S.
Treasury secretary nominee, who might be restrictive on the
fiscal stimulus side, were weighing on gold prices.
The U.S. dollar touched a four-week peak against a
basket of major currencies, limiting bullion's appeal for
holders of other currencies.
Although U.S. inflation expectations have risen in
anticipation of more American fiscal stimulus, gold has not been
the sole beneficiary - bond yields have risen and weighed on
gold, Phillip Futures said in a note.
U.S. Treasury yields scaled a 10-month high last week.
Among other precious metals, silver gained 0.6% to
$24.88 an ounce, while platinum was up 0.5% at $1,078.52
and palladium lost 0.6% to $2,368.45.
(Reporting by Asha Sistla and Sumita Layek in Bengaluru;
editing by Kirsten Donovan and Jonathan Oatis)
Delayed 04:08:57 2024-04-23 pm EDT | 5-day change | 1st Jan Change | ||
2,322 USD | -0.49% | -2.49% | +12.60% |
08:01pm | Gold Falls Again After Plunging the Most in Nearly Two Years on Monday as International Tensions Ease | MT |
07:08pm | Exchange-Traded Funds, US Equities Rise Amid Lower Treasury Yields | MT |
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
1,350 PTS | +0.32% | -5.64% | - | ||
1,018 USD | +0.64% | -1.30% | - | ||
27.32 USD | +0.08% | -5.45% | - | ||
13.88 EUR | +2.78% | +8.44% | 17.03B | ||
1.07 USD | +0.45% | +0.72% | - | ||
- PTS | -.--% | +1.02% | - | ||
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