Gold prices are climbing higher in early trading on Friday, supported by President elect Joe Biden’s plans for more fiscal stimulus worth $1.9 trillion for the US economy. At the time of writing, GOLD is trading at a little above $1,850.

During the previous session, Biden revealed his proposal for more stimulus measures to prop up the economy and help it overcome the hit suffered due to the coronavirus pandemic. The American Rescue Plan, as it is titled, recommends more stimulus checks, unemployment benefits and an increase in the federal minimum wage – all of which would require higher borrowing by the government.

In addition to expectations for more stimulus measures, gold prices are enjoying support from Fed Chair Powell’s recent comments about how the central bank is unlikely to increase interest rates anytime soon. Inflation and employment are expected to take longer to return to pre-pandemic levels, and the Fed could maintain its dovish stance until these goals are achieved.

Gold also turned bullish after the release of the latest jobless claims report which revealed an increase in the number of Americans filing fresh unemployment claims in the past week. Weekly initial jobless claims rose to 965k in the previous week – an indicator that the labor market in the US is still under strain.