In global markets, gold prices edged higher on optimism that US lawmakers will soon pass the massive economic stimulus to revive the world’s largest economy. Spot gold rose 0.3% to $1,858.57 per ounce after dropping 0.9% in the previous session. Gold
Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund or gold ETF, SPDR Gold
On gold traders watch this week will be the announcement of US Federal Reserve’s monetary policy committee’s decision and briefing by Chair Jerome Powell, both scheduled for Wednesday. Also, US fourth-quarter GDP, initial and jobless claims data will be released on Thursday.
Asian equity markets were mostly higher today while S&P 500 futures pointed higher. Investors are hoping Fed Chair Jerome Powell may reassure that US central bank’s $120 billion of monthly bond purchases won’t be tapered any time soon.
Meanwhile, physical gold demand in Asia picked up last week as the approaching Chinese New Year encouraged buyers in China and Singapore. In India, dealers charged a premium of up to $1 an ounce, up from the previous week’s premium of $0.5, over official domestic prices. GoldGold
Finance minister Nirmala Sitharaman will present the annual budget on February 1.
“GoldBiden administration. But the general bias may be on the upside as expectations of higher US stimulus may keep pressure on US dollar,” Kotak Securities said in a note last week. (With Agency Inputs)
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