Gold prices are holding steady early on Thursday after rallying more than 1% during the previous session in anticipation of Fed chair Powell’s speech revealing plans for more stimulus for the US economy. At the time of writing, GOLD is trading at a little above $1,942.

Gold also enjoys support from a weakness in the US dollar ahead of the Fed’s annual Jackson Hole symposium. The dollar has slipped to the lowest levels in nearly a week and shares a negative correlation with the yellow metal, helping it become more affordable for holders of other currencies.

The safe haven appeal of gold remains strong on the possibility of rising tensions between the US and China once again. Although both countries have agreed to work towards implementing the phase one trade deal, geopolitical tensions are building up after China fired missiles in the South China Sea even as the US imposed sanctions on Chinese companies with links to this region.

There are also expectations that the US’s coronavirus relief bill could be making some progress. According to latest reports, Republicans in the US Congress are working on a new bill that has narrower scope but will offer more stimulus support for the US economy, which is also going to keep gold prices moving upward.