Gold rises as stimulus bets strengthen after weak US data

Thursday, January 14, 2021 - 18:25
Point Trader Group
Gold rises as stimulus bets strengthen after weak US data

Gold prices rose in volatile trading Thursday, as data showing weakness in the labor market boosted bets on further government stimulus, supporting the metal's attractiveness as a hedge against inflation and the pressures of the dollar's strength.

Spot gold rose 0.2 percent to $ 1847.36 an ounce, while US futures contracts fell 0.4 percent to $ 1846.70.

The number of Americans filing for new unemployment benefits increased last week.

"This big jump is a reminder to everyone that the labor market situation is still dire, and it will warrant further stimulus," said Edward Moya, chief market analyst at Oanda, adding that concerns about the coronavirus pandemic are still supportive of gold.

Today, US President-elect Joe Biden is scheduled to unveil a proposal for a stimulus package that could exceed $ 1.5 trillion.

Meanwhile, the dollar continued to gain against other currencies.

As for the other precious metals, silver rose 1.7 percent to $ 25.57 an ounce. Platinum rose 1.5% to $ 1,109.98, while palladium rose 0.3% to $ 2,391.08.

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