Gold spot prices lifted 4.7 points or 0.25% to 1841.44 in early Tuesday trade, gaining from 6-week lows ahead of Janet Yellen’s hearing before the Senate Finance Committee. According to prepared remarks, Yellen is set to tell the Senate Finance Committee that the government must “act big” with its next Covid relief package. Meanwhile, the Wall Street Journal reported that Yellen is expected to affirm the US’ commitment to market-determined exchange rates, making clear that the US doesn’t seek a weaker dollar for competitive advantage.
Investors continue to monitor rising coronavirus cases and the impact it will have on the global economy and lingering uncertainty and security concerns ahead of President-elect Joe Biden inauguration on Wednesday. Last week, Biden unveiled a $1.9 trillion stimulus plan but doubts over whether Congress will pass it lowered gold appeal as a hedge against inflation and currency devaluation.