Picture used for illustrative purpose. File

Gulf Today Report

Gold jumped on Wednesday after the US dollar and Treasury yield declined and hope for a large US fiscal stimulus boosted its appeal.

Spot gold rose 0.1% to $1,857.76 per ounce by 05:37 GMT while US gold futures gained 0.8% to $1,859.20.

IG Market analyst Kyle Rodda said, "the big picture is it's still a very constructive year for gold. With real yields remaining rather negative and the dollar continuing its path lower as the year unfolds, gold remains an attractive proposition." 

READ MORE 

Tesla finally enters India, first stop is Bengaluru

Japan bank lending deposits rise despite pandemic problems

Philippines' central bank sees solid rebound for its economy

Benchmark 10-year Treasury yields declined after recording 10-month highs, it dragged the dollar low. That has made gold cheaper for other currency holders.

US President-elect Joe Biden’s plan for a larger stimulus package also boosted gold.

Gold prices benefit from a loose monetary policy. Among other precious metals, silver dipped 0.4% to $25.48 an ounce, platinum eased 0.1% to $1,074.55, and palladium fell 0.2% to $2,386.72.