Hopes for US stimulus are lifted in gold and platinum, at their highest since 2015


Gold rose today, hovering near the peak of a week that it reached in the previous session, as the attractiveness of the yellow metal rose as a hedge against inflation after the dollar fell and hopes rose for an American stimulus package.
Gold rose in spot trading 0.3 percent to 1842.90 dollars an ounce by 0716 GMT. Prices reached their highest levels since the second of February to $ 1848.40 on Tuesday. And US gold futures won 0.4 percent to $ 1845.30.
The dollar fell to near its lowest level in two weeks against its rivals.
“With US yields stabilizing, gold is moving inversely to the dollar. This is not a gold issue but rather a weak dollar,” said Jeffrey Haley, chief market analyst at Oanda.
A $ 1.9 trillion aid bill proposed by US President Joe Biden to mitigate the coronavirus fallout is expected in Congress, despite Republican opposition to the value.
“US inflation numbers represent a great danger,” Haley said, adding that a higher figure could cause a strong rise in the short term for the US dollar and push gold down. January CPI data is due out by 1330 GMT.
Higher inflation boosts gold, but it also raises treasury yields, which in turn increases its cost of the opportunity to acquire the yellow metal.
Investors are now awaiting a speech by US Federal Reserve Chairman Jerome Powell ahead of a hypothetical New York Economic Club event by 1900 GMT.
As for other precious metals, platinum reached its highest level since February 2015 at $ 1,208.50, and in the most recent transactions rose 2.43 percent to $ 1,203.24.
Analysts say the global economic recovery, along with Biden’s bid to support green energy, could push the platinum market to run a deficit this year.
And silver gained in spot transactions 0.4 percent to 27.32 dollars an ounce, while palladium rose 0.2 percent to 2323.35 dollars.


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