Gold Investors Are Waiting For News From Incentive Package

Gold investors are waiting for news from the incentive package. Eyes turned to the stimulus package that Joe Biden was talking about. As investors focused on strong US dollar and bond yields, gold, which broke the longest daily downward trend, began to traverse. The rise of the US dollar after at its lowest level in the last three years and the increase in the interest rate of the US 10-year Treasury bond put pressure on non-interest earning gold. Elected US President Joe Biden, who recently mentioned that they will give trillions of dollars in stimulus packages, is preparing the offer. Accordingly, it is stated that the interest in high inflation expectations may increase. On the subject, Daily FX Strategist Margaret Yang says: “While gold prices are suppressed by rising dollar and bond yields, markets seem to be ignoring the signs of rising inflation and the stimulus package. This means that sales in gold are temporary and the downward trend can be stopped by Biden's announcement of a new stimulus package.” Gold prices moved 0.3 percent vertically and traded around $ 1,849.64 an ounce.     This article has contributions of Bloomberg HT.