Gold Trades Close to One-Week High – US Stimulus Eyed
Arslan Butt • 1 min read
Early on Thursday, gold is trading somewhat steady, close to the highest levels seen in a week, as traders turn their attention to developments surrounding the coronavirus relief package in the US. At the time of writing, GOLD is trading at a little above $1,869.
With the deadline before the government shutdown fast approaching, Congressional lawmakers are making progress towards approving a stimulus package worth $900 billion, including stimulus checks and more unemployment benefits. The possibility of fresh fiscal stimulus has weakened the US dollar and boosted the safe haven appeal of gold.
Gold prices also enjoyed support from the Fed’s confirmation of holding interest rates low for a longer period of time. After the latest FOMC meeting, the US central bank stated its intention to extend its bond purchase program until the US economy made substantial progression towards raising employment levels and achieving 2% inflation.
Later today, the precious metal could experience some movement on the release of the BOE’s policy decisions. Markets are widely expecting the central bank to hold its policy steady in the wake of Brexit-related uncertainties, but any surprises could drive volatility in gold prices.