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In international markets, gold prices dipped today ahead of the US Federal Reserve’s monetary policy decision due later in the day. Gold
Focus is on also Washington as lawmakers prepare to discuss Joe Biden‘s $1.9 trillion economic rescue package with investors seek more clarity on the timeline for Covid-19 relief plan.
ETF demand continued to remain weak. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold
Also on investors’ radar will be data releases later today on US fourth-quarter GDP, initial jobless claims and new home sales.
Meanwhile, the IMF on Tuesday raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn in 2020 would be nearly a full percentage point less severe than expected.
Analysts say that US stimulus hopes continue to support gold at lower levels. However, volatility has increased as market players position for policy changes under Biden administration, they say adding that domestic players also awaiting Budget to get clarity on import duty. Gold
Trend in US dollar index has been key price determining factor for gold in recent days. Today the dollar index was slightly higher at 90.203. On the other hand, gold has got support on the lower side from its safe-haven appeal amid rising coronavirus cases and mixed economic data from major economies and increased US-China tensions. (With Agency Inputs)
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