(Reuters) – Gold
Spot gold rose 0.2% to $1,867.66 per ounce by 0314 GMT. It rose to $1,869.06, its highest since Nov. 23, earlier in the session.
U.S. gold futures were up 0.3% at $1,871.70.
“Markets more or less are pricing in that a deal will get done… It’s going to be about how large that package happens to be, how soon it comes and how that manifests in inflation expectations going forward,” said IG Markets analyst Kyle Rodda.
The U.S. Congress will vote this week on a stopgap funding bill to provide more time to reach a deal on COVID-19 reduction and avert a authorities shutdown.
U.S. Senate Democratic chief Chuck Schumer stated there have been indicators of progress in talks on a bipartisan invoice.
Underscoring the necessity for stimulus, California on Monday imposed a raft of latest COVID-19 restrictions, whereas New York weighed a ban on indoor eating as nationwide instances proceed to soar.
Technically, gold stays in an total bearish development within the medium time period, stated Margaret Yang, a strategist at DailyFX.
Because the present stimulus bundle stays beneath market expectations, it may not drive costs additional going ahead, she stated.
If gold fails to interrupt a resistance at $1,870, there may be one other pullback with help at $1,800, Yang stated.
Silver rose 0.6% to $24.66 per ounce and platinum was regular at $1,021.03, whereas palladium gained 0.1% to $2,334.38.
Reporting by Nakul Iyer in Bengaluru; Modifying by Ramakrishnan M.