Gold was up on Tuesday morning in Asia, climbing back up from the one-and-a-half-month low seen during the previous session, as hopes for further stimulus measures to boost economic recovery from COVID-19 countered a firmer dollar.
Investors await comments from Secretary of the Treasury nominee Janet Yellen, on U.S. stimulus measures and the dollar during her Senate confirmation hearing later in the day.
Yellen will testify before the Senate Finance Committee and will likely touch on topics ranging from foreign-exchange policy to taxes. She is reportedly expected to affirm the U.S.’ commitment to market-determined exchange rates and indicate that the country doesn’t seek a weaker dollar for competitive advantage and is expected to tell the committee that the government must “act big” with its next COVID-19 relief package.
U.S. President-elect Joe Biden outlined a $1.9 trillion stimulus package proposal to jump-start the virus-stricken economy during the previous week.
Across the Atlantic, the European Commission warned that the COVID-19 pandemic was making the bloc’s economic imbalances worse and European finance ministers vowed to provide continued fiscal support for their economies on Monday as they discussed the design of post-COVID-19 recovery plans.
The Global Palladium Fund, which is backed by Russian nickel and palladium mining and smelting company Norilsk Nickel, has launched exchange traded commodities. These blockchain-tracked securities offer investors exposure to palladium, platinum, gold and silver spot prices without owning the metals.
On the central bank side, the European Central Bank and the Bank of Japan will hand down their policy decisions on Thursday.
Meanwhile, International Monetary Fund Managing Director Kristalina Georgieva said the global lender needed more resources to help heavily indebted countries, citing a highly uncertain global economic outlook. World Health Organization Director-General Tedros Adhanom Ghebreyesus also urged a more equitable spread of COVID-19 vaccines doses across countries.