Gold prices again traded above $ 1,700 in early trading week after the U.S. Senate approved a $ 1.9 trillion stimulus package, boosting gold’s attractiveness as a hedge to inflation.
On Saturday, the U.S. Senate approved President Joe Biden’s stimulus package with a very intense vote after more than 24 hours of debating legislation and amendments against it.
The stimulus package includes a direct payment of $ 1,400 for each eligible citizen, $ 300 per week for unemployment benefits until September, as well as provisions for state, education and health care.
However, with the passage of a large stimulus package by the government, this also means that the 10 -year US treasury yield also increased.
This increase has limited gold prices from rising higher, causing it to trade around the $ 1,705 per ounce price level as the market heads towards the opening of the European session (2.30pm Malaysian time).
Earlier, the precious metal had fallen to a nine -month low of $ 1,687 per ounce, having seen NFP employment data readings far stronger than market expectations.
