Photographer: Carla Gottgens / Bloomberg
Photographer: Carla Gottgens / Bloomberg
Gold saw a stronger dollar and currency outlook, while investors assessed the timing of the US stimulus package.
Former Federal Reserve Chairman Janet Yellen is expected to affirm the U.S. commitment to market-driven exchange rates when she testifies on Capitol Hill on Tuesday and clarifies that the U.S. is not looking for a weaker dollar for a competitive advantage, according to a report from the Wall Street Journal, citing people familiar with the training. A green dollar has risen in the past two weeks.
Yellen’s confirmation hearing as secretary of the treasury is scheduled for Jan. 19 in front of the Senate Finance Committee, a day before President-elect Joe Biden is sworn in.
Bullion fell nearly 4% this year as US Treasury and dollar yields advanced. However, the metal remains above $ 1,800 an ounce and is expected to receive support from massive stimulus packages from central banks and governments. Biden this pushing for swift action by Congress on its economic aid plan, but risks slowing it down with a federal minimum wage increase that Republicans and business groups have long struggled with.
“A stronger US dollar is proving to be a headwind for precious metal prices, despite massive proposals to stimulate trillions of dollars to mitigate the negative effects of Covid-19,” said Avtar Sandu, senior merchandise manager at Phillip Futures Pte.
Spot gold traded slightly at $ 1,828.22 an ounce by 12:43 pm in Singapore, after falling 1.3% earlier. Prices ended 1.1% lower last week. Silver and platinum increased, while palladium was constant.
Meanwhile, like the US the death toll in Covid-19 is close to 400,000, Anthony Fauci, the country’s leading infectious disease expert, said Biden’s promise to deliver 100 million doses of vaccine in 100 days is achievable thing. “Vaccinations in the United States began on December 14 with health workers and so far 13.7 million gunshots have been reported, according to a statewide Bloomberg News report and data from the Centers for Disease Control and Prevention.
– With the assistance of Ranjeetha Pakiam