Gold Up Over Weaker Dollar, Yellen Push for More COVID-19 Relief Spending By

© Reuters.

By Gina Lee – Gold was up on Wednesday morning in Asia, thanks to a weaker and comments from Secretary of the Treasury nominee Janet Yellen calling for more COVID-19 relief spending helping to lift the yellow metal’s appeal as an inflation hedge.

were up 0.51% at $1,849.60 by 11:27 PM ET (4:27 AM GMT).

Yellen made the comments during her Senate confirmation hearing before the Senate Finance Committee on Tuesday, arguing that the economic benefits of a large stimulus will far outweigh the risks of a higher debt burden.

The dollar fell for a second consecutive session on Tuesday, while most U.S. Treasury yields fell after Yellen said in her hearing that tax cuts enacted in 2017 for large corporations should be repealed. The greenback continued the losses on Wednesday.

Meanwhile, President-elect Joe Biden and his administration takes office later in the day, with investors focused on the previous week’s $1.9 trillion stimulus package proposal to boost the economy and speed up COVID-19 vaccine distribution.

On the COVID-19 front, the number of deaths from the virus in the U.S. surpassed 401,000 and the number of cases in the country topped 24 million as of Jan. 20, according to Johns Hopkins University. The data also showed that the number of cases globally has topped 96 million.

The Bank of Japan and the European Central Bank will hand down their policy decisions on Thursday. Meanwhile, Bank of England chief economist Andrew Haldane predicted during a webinar on Tuesday that the U.K.’s economy could begin to recover “at the rate of knots” from the second quarter of 2021, as vaccine rollouts continue.

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.

{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
s.parentNode.insertBefore(t,s)}(window, document,’script’,
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by :

Source link

Capital Media

Read Previous

Zoom work relationships are a lot harder to build – unless you can pick up on colleagues’ nonverbal cues

Read Next

UK to engage with aerospace sector over tariff issues after Brexit By Reuters