Photographer: Carla Gottgens / Bloomberg
Photographer: Carla Gottgens / Bloomberg
Gold maintained a fall with a stronger dollar and the currency’s outlook, as investors weighed the schedule for the US stimulus package.
Former Federal Reserve Chairman Janet Yellen is expected to affirm the US commitment to market-determined exchange rates when she testifies on Capitol Hill on Tuesday, and she will make it clear that the U.S. is not looking for a weaker dollar to get competitive advantage, according to a Wall Street Journal report, citing people familiar with the preparation. The dollar indicator has risen in the past two weeks.
Yellen’s confirmation hearing as secretary of the treasury is scheduled for January 19 in front of the Senate Finance Committee, the day before President-elect Joe Biden takes office.
Gold fell nearly 4% this year, with US Treasury yields and the dollar advancing. Still, the metal is staying above $ 1,800 an ounce and is expected to receive support from huge stimulus packages by central banks and governments. Biden is pushing for quick action by Congress on its economic aid plan, but it risks slowing it down with an increase in the federal minimum wage that Republicans and business groups have long struggled with.
“A stronger dollar is proving to be an obstacle to precious metal prices, despite massive trillion dollar stimulus proposals to alleviate the damaging effects of Covid-19,” said Avtar Sandu, senior commodities manager at Phillip Futures Pte .
Spot gold has barely changed at $ 1,828.22 an ounce at 12:43 pm in Singapore, after falling by 1.3%. Prices closed 1.1% lower last week. Silver and platinum increased, while palladium remained stable.
Meanwhile, as the USA the death toll from Covid-19 reached 400,000, Anthony Fauci, the country’s leading infectious disease specialist, said Biden’s promise to deliver 100 million doses of vaccine in 100 days is “absolutely a doable thing. ”Vaccination in the United States began on December 14 with healthcare professionals, and so far 13.7 million vaccines have been administered, according to a state-to-state count from Bloomberg News and data from the Centers for Disease Control and Prevention.
– With the help of Ranjeetha Pakiam