Gold, Silver Down Thanks to Strong Dollar, U.S. Stimulus Moves Forward
Investing.com
Published Feb 03, 2021 11:52PM ET
Updated Feb 04, 2021 12:03AM ET
By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia, alongside silver, as investors weighed a strong dollar and progress on further U.S. stimulus measures.
Gold futures were up 0.66% at $1,822.90 by 11:54 PM ET (4:54 AM GMT). Silver prices eased after climbing to a near eight-year peak of $30.03 earlier in the week as a social media-driven rally fizzled out and returned calm to the market.
The dollar, which normally moves inversely to gold, was at its highest levels in over two months on Wednesday and continued the upward trend in the Asian session. The Benchmark 10-year Treasury yield also rose to its highest in over three weeks.
Progress on passing a $1.9 trillion stimulus package through Congress continues. The Senate began debating a budget resolution for the 2021 fiscal year on Tuesday, the first step towards passing the package propose by President Joe Biden in January. Although disagreements with Republicans over the package’s price tag remains, Biden said that he would consider tighter limits on qualification for the $1,400 checks that are called for in the package.
Although ultra-easy monetary policy could support the U.S. economy in the long term, more short-term fiscal help may be necessary to carry the U.S. economy through the COVID-19 pandemic, Cleveland Federal Reserve Bank President Loretta Mester said on Wednesday.
Investors also wait the U.S. payrolls report for January, including non-farm payrolls, which will be released on Friday.
The Bank of England on Thursday will hand down its policy decision later in the day and is likely to set its sights on the prospects of economic recovery later in 2021. Although widely expected to keep both interest rates and quantitative easing steady, investors will look for clues on the likelihood of the central bank introducing negative interest rates.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.