Gold prices are ticking higher on Wednesday, buoyed by a weakness in the US dollar driven by Treasury Secretary nominee Janet Yellen’s recent comments over the need for increased fiscal stimulus measures for the US economy. At the time of writing, GOLD is trading at a little above $1,851.

Gold, which shares a negative correlation with the dollar, has benefited as a weaker greenback makes the yellow metal more affordable for holders of other currencies. In addition, Yellen’s remarks to lawmakers about increasing the scope of stimulus without worrying about higher debt has boosted the appeal of the precious metal as a hedge against inflation and currency debasement.

The safe haven appeal of gold was also strengthened by a decline in US Treasury yields on the back of Yellen’s statements during the previous session about repealing tax cuts implemented in 2017 for large corporations. This soured the market sentiment and weakened investor confidence in the US economy, aiding the bullishness in bullion.

In addition, the yellow metal also enjoys support from the ongoing spike in coronavirus cases across the world and the imposition of more lockdowns and restrictions, most recently in Germany. Later today, gold traders are likely to focus their attention on Biden’s inauguration as the next President of the US and his plan to roll out the proposed $1.9 trillion fiscal stimulus package.