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Photographer: Carla Gottgens / Bloomberg
Photographer: Carla Gottgens / Bloomberg
Gold fell on the strength of the dollar and the outlook for the currency, as investors assessed the timing of the US stimulus package.
Former Federal Reserve Chairman Janet Yellen is expected to affirm the US commitment to market-determined exchange rates when she testifies on Capitol Hill on Tuesday, and she will clarify that the United States will not not looking for a lower dollar for a competitive advantage, according to a Wall Street Journal report, citing people familiar with the preparation. A gauge of the greenback has climbed over the past two weeks.
Yellen’s confirmation hearing as Secretary of the Treasury is scheduled for Jan. 19 before the Senate Finance Committee, the day before President-elect Joe Biden is sworn in.
Bullion has fallen almost 4% this year as yields on the US Treasury and the dollar have advanced. Still, the metal remains above $ 1,800 an ounce and is expected to receive support from massive stimulus packages from central banks and governments. Biden is pushing for quick congressional action on his economic relief plan, but he risks slowing it down with a federal minimum wage hike that Republicans and business groups have long been fighting.
“A stronger US dollar is proving to be a headwind for precious metals prices despite massive $ 1 trillion stimulus proposals to mitigate the adverse effects of Covid-19,” said Avtar Sandu, senior director of commodities at Phillip Futures Pte.
Spot gold was little changed at $ 1,828.22 an ounce at 12:43 pm in Singapore after an earlier drop of 1.3%. Prices ended last week down 1.1%. Silver and platinum rose, while palladium was stable.
Meanwhile, like the United States The death toll from Covid-19 has approached 400,000, Anthony Fauci, the country’s top infectious disease specialist, said Biden’s pledge to deliver 100 million doses of vaccine in 100 days is “absolutely a doable thing. Vaccinations in the United States began Dec. 14 with health workers, and so far 13.7 million vaccines have been administered, according to a state-by-state count from Bloomberg News and data from the Centers for Disease Control and Prevention.
– With the help of Ranjeetha Pakiam
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