Gold Holds Two-Day Advance With Stimulus and Inflation in Focus By Bloomberg

© Reuters. Gold Holds Two-Day Advance With Stimulus and Inflation in Focus

(Bloomberg) — Gold was steady after the biggest two-day gain in a month as investors weighed prospects for more stimulus in the U.S. and the possibility of higher consumer prices against a focus on and stocks at a record.

Bullion rose on Monday as Democrats released the first draft of key legislation that will comprise President Joe Biden’s Covid-19 relief bill. Bets on a robust package are helping to underpin market-derived inflation expectations, which are at multi-year highs, and have fanned the so-called reflation trade.

Gold is rebounding after last week’s retreat to the lowest level since the start of December, when a stronger dollar and rising U.S. Treasury yields weighed on the haven asset that doesn’t offer interest. A report on Wednesday is forecast to show U.S. consumer prices rising at a quickening pace.

“Gold is rallying from a two-month low as Biden’s massive $1.9 trillion plan is about to become a reality,” said Edward Moya, senior market analyst at Oanda Corp. “The economic recovery is weak, and prospects are growing that more will be done. The reflation trade is happening a lot faster than expected.”

was steady at $1,832.68 an ounce by 8:25 a.m. in Singapore, after a 2.1%, two-day gain. Silver rose with platinum, while palladium was little changed. The Bloomberg Dollar Spot Index was flat after easing 0.1% Monday.

Meanwhile, traders were also watching a surge in Bitcoin, which hit a record on Monday after Tesla (NASDAQ:) Inc. bought $1.5 billion of the cryptocurrency. The automaker said revised policies also permit it to invest in gold.

©2021 Bloomberg L.P.

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 : Bloomberg

Source link

Capital Media

Read Previous

Drake and Jake, Mountain Dew’s millions and the Marvel Universe – which ads won the Super Bowl, and which fell flat

Read Next

White House says it aims to strengthen ties with Brazil, but will speak out on concerns By Reuters