Gold futures ended higher on Wednesday, extending gains to a fourth straight session, as the dollar shed further ground amid rising expectations for another U.S. stimulus.
Traders were also betting on hopes demand for metals will see a significant rise soon as the global economy is likely to see a swift recovery thanks to vaccination rollout and falling rate of new coronavirus cases in several parts across the world.
U.S. President Joe Biden’s $1.9 trillion coronavirus relief bill is expected to pass through Congress despite opposition from Republicans over the aid’s price tag.
The dollar index, which fell to 90.25 in the Asian session, rebounded into positive territory later on, but slid again as the day progressed. It was last seen hovering around 90.40, down marginally from previous close.
Gold futures for April ended up $5.20 or about 0.3% at $1,842.70 an ounce.
Silver futures for March ended lower by $0.324 at $27.078 an ounce, while Copper futures for March settled up $0.0525 at $3.7725 per pound, registering an eight-year high in the session.
Platinum contracts for April ended at their highest level in about 6 years, gaining about 4.4% for the day as it settled at $1.246.90 an ounce.
In U.S. economic news, data from the Labor Department showed consumer prices in the U.S. increased in line with economist estimates in the month of January. The report said the consumer price index rose by 0.3% in January after edging up by a revised 0.2% in December.
Economists had expected consumer prices to climb by 0.3% compared to the 0.4% increase originally reported for the previous month.
The material has been provided by InstaForex Company – www.instaforex.com