Yellen Has to Make Decisions on China

Yellen Has to Make Decisions on China

In Delhi, gold gained for the third day, rising Rs 347 to Rs 48,758 per 10 gram.

Global equity benchmarks rose to new record highs and oil prices rose on Wednesday as investors moved into riskier assets in anticipation of further US stimulus under the new Biden administration to mend the economic damage of the coronavirus pandemic.

Gold and copper surged as the dollar weakened amid signs that interests rates may remain low, boosting inflation expectations as Joe Biden begins his first day as US president.

"However, the prospect of further stimulus along with a weaker dollar continues to support gold in the bigger picture perspective".

If confirmed, Yellen said she would work to implement Biden's promise to "oppose any and all the attempts by foreign countries to artificially manipulate currency values to gain an unfair advantage in trade". The US treasury yields also fell.

Joe Biden was sworn in as the president of the United States on Wednesday with markets focusing on his proposed $1.9 trillion dollar coronavirus stimulus package, which will require approval from a divided Congress.

Nisanci, who most recently served as global head of public policy at Bloomberg L.P., was previously the chief of staff for the Securities and Exchange Commission in the Obama-Biden administration.

During her confirmation hearing held by the Senate Finance Committee on Tuesday, Treasury Secretary-nominee Janet Yellen dropped some dovish bombs as she said America needs to "act big" to protect itself from long-term effects with a major stimulus package.

Gold is considered a hedge against inflation and currency debasement that can result from widespread stimulus.

Previous Treasury secretaries have also affirmed their commitment to a market-determined exchange rate, and some in recent years have said that a strong dollar is in USA interests. In August a year ago, gold had hit a record high of ₹56,200 per 10 gram in global markets.

Spot silver fell 0.1% to $25.77 per ounce.

"Gold may continue to witness choppy trade unless there are fresh triggers however the general bias may be on the upside as prospect of U.S. stimulus and concerns about rising virus cases may continue to support prices", the brokerage added.

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