World News – US – Gold stabilizes on U renewed

(Reuters) – Gold rose slightly on Tuesday, spurred by growing expectations that US lawmakers would agree to new stimulus legislation to ease the economic impact of the coronavirus, bolstering the attractiveness of metal as a hedge against inflation

Rose gold spot 005% at $ 1,913 76 an ounce by 9:57 am EDT (1357 GMT), having hit its highest level in nearly two weeks Monday at $ 1,918 36 US gold futures have dropped 006% to $ 1919

« The main pillar of support for this (gold) market remains optimism regarding the additional coronavirus stimulus package, » said David Meger, director of metals trading at High Ridge Futures

« This theme of continued stimulus-erosion of the money supply by injecting additional fiscal and monetary measures into the market » weakens the dollar and supports gold, added Meger

Gold tends to benefit from widespread central bank stimulus as it is widely seen as a hedge against inflation and currency degradation

However, an increased appetite for riskier assets, which besides stimulus hopes was also supported by US President Donald Trump’s return to the White House from the hospital, curbing bullion gains

Meanwhile, Federal Reserve Bank of Chicago Chairman Charles Evans said on Monday that he expects inflation to hit 2% by 2023 and wants to push it to 25%. % to compensate for years of price increases below target

« If inflation goes up and the Fed doesn’t raise rates, which it basically said it wouldn’t do, then real rates will get more negative It’s good for gold », James Steel, chief commodities analyst at HSBC, said in a note

Elsewhere, silver rebate 119% to $ 24.06 an ounce, platinum fell 215% to $ 87767, while palladium rose 01% to $ 236449

Gold, Donald Trump, US Department of Treasury, Stimulus, Federal Reserve System, GoldseekCom