Gold edges up on Biden's stimulus proposal

Friday,   15-Jan-2021   08:47 AM (IST)

Gold rose on Friday as U.S. President-elect Joe Biden unveiled a massive stimulus plan, while U.S. Federal Reserve Chair Jerome Powell's commitment to keep monetary policy dovish further boosted the metal's appeal. Spot gold rose 0.2% to $1,850.36 per ounce by 0042 GMT, while U.S. gold futures GCv1 were flat at $1,852.20. Biden unveiled a $1.9 trillion stimulus package proposal on Thursday designed to jump-start the economy and speed up the U.S. response to the coronavirus pandemic. With the U.S. economy still far from its inflation and employment goals it is too early for the Federal Reserve to discuss changing its monthly bond purchases, Powell said on Thursday. The number of Americans filing first-time applications for unemployment benefits surged last week, confirming a weakening in labor market conditions with a worsening COVID-19 pandemic. Global coronavirus cases rose to more than 92.22 million. America will be in uncharted territory when the U.S. Senate meets as soon as next week for the second impeachment trial of Donald Trump, after the House of Representatives impeached Trump on Wednesday on charges of incitement one week after his supporters rampaged in the Capitol. SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.9% to 1,161.00 tonnes on Thursday from 1,171.21 tonnes on Wednesday. Silver rose 0.5% to $25.65 an ounce. Platinum eased 0.2% to $1,116.52, while palladium shed 0.1% to $2,406.99.