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Gulf Today Report

Gold prices jumped on Thursday as US fiscal stimulus progresses, and Federal Reserve pledge to retain low rates.

Spot gold rose 0.3% to $1,869.36 per ounce by 06:00 GMT, having hit a one-week high of $1,870.11 earlier in the session.

US gold futures increased 0.7% at $1,871.60. The upcoming fiscal stimulus is likely to support gold although it is not what the market expected and might not reverse gold’s downward trend, said DailyFx currency strategist Ilya Spivak. 

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The $900 billion COVID-19 bill includes a $600-$700 stimulus checks and extended unemployment benefits.

According to Stephen Innes, chief global market strategist at financial services firm Axi, inflation is expected to push the dollar lower and break-evens higher, which would send gold higher.

Silver rose 0.4% to $25.44 an ounce. Platinum gained 0.8% to $1,042.53 and palladium was up 0.6% at $2,339.70.