Gold Rises With Support From US Stimulus Package

Gold rises with support from the US stimulus package. US Elected President Joe Biden announced that the new stimulus package will be $ 1.9 trillion. US Elected President Joe Biden's announcement of the details of the stimulus package and the FED President Jerome Powell's announcement that monetary policy support would continue brought gold prices up. It is stated that Republicans may object to the package, since it is the priority of Democrats that the $ 1.9 trillion support package that Biden will submit to Congress for approval includes issues such as state aid or aid to local governments. In addition, FED Chairman Powell said that it is too early to quantify the massive asset program, and that it is not time to discuss this now. Moreover, Powell stressed that the policy rate will not be raised anytime soon and policy makers will clearly convey the message when the asset purchase program is reduced. On the rise of gold, Daniel Hynes and Soni Kumari, Commodity Strategists of Australia New Zealand Banking Group, said: “The rise in gold may be limited by rising bond yields and the appreciation of risky assets, but the weakening US dollar, stimulus package expectations and low real interest rates will continue to support prices. Developments regarding the asset purchase program will be pressuring news this year.” On the last trading day of the week, it seems that gold will complete the week with a little price change, with investors focusing on bond rates and statements from the FED. Today, gold prices traded at $ 1853.40 per ounce in Turkey at 07:59 am.