Gold prices are about to record the first daily gain in 7 sessions
June 21, 2021
493 Views
Gold prices rose by more than 1% during the trading session today in the European…
Gold prices rise thanks to the US fiscal stimulus
Gold Prices Outlook: 15th January 2021
Gold prices rose during Friday’s trading in the European market at the end of the week’s commodities trading, as prices received more support recently thanks to the increase in demand for the metal as a hedging tool, especially after the US president-elect, Joe Biden, unveiled his huge stimulus plan to mitigate the repercussions of Corona, which supported gains Gold today also made the statements of Federal Reserve Chairman “Jerome Powell”, in which he pledged the bank’s commitment to maintaining the lenient monetary policy.
At exactly 08:25 GMT, the spot price of gold was up by about 0.1% to trade around 1848.75 US dollars an ounce, compared to the opening level at 1846.72 dollars and reached early in the session the lowest price at 1845.38 dollars an ounce.
While US gold futures settled unchanged to remain at $ 1851 an ounce.
At the end of yesterday’s trading, the precious metal “gold” was able to end the session, rising by 0.1% in the second daily gain during the last three sessions, as prices received more support thanks to the bounce operations from their lowest levels in a month and a half at $ 1817.31 an ounce, following the announcement. About a huge stimulus plan in the United States.
Financial stimulus supports gold prices
Yesterday, the US President-elect, Joe Biden, who is expected to take office officially on the twentieth of January to succeed President Donald Trump, revealed his stimulus plan, which he called the “American bailout” worth 1.9 trillion dollars for relief from the Covid pandemic – 19.
Biden told his plan has 2 phases. The first phase includes providing aid to affected families who are in dire need of it, and the second phase is an investment in workers and infrastructure.
Powell’s statements
Jerome Powell, chairman of the Federal Reserve Board (the US central bank), said on Thursday during a hypothetical seminar at Princeton University that the bank would raise interest rates “as soon as possible,” unless there were worrisome indications of inflation.
Powell indicated that the time is not appropriate to talk about ending the monetary easing program of the Federal Reserve, adding that the US economy is still far from the objectives of the Federal Open Market Committee, with his assertion that future directions regarding interest and the asset purchase program are not compatible with a time frame, but rather on the results achieved.
As we know, easing monetary policy adds pressure on US bond yields and benefits gold that does not yield a return.
Otherwise, and returning to other precious metals trading, silver declined by 0.4% during spot transactions, to the level of 25.41 US dollars per ounce, and palladium lost 1.1% at 2383.11 dollars, while platinum fell 1.8% to 1098.42 dollars, but it has increased 3% since the beginning of the week.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
