Gold Gains on Weaker Dollar, U.S. Stimulus View

Gold last traded at $1,824 an ounce. Silver at $27.75 an ounce.

NEWS SUMMARY: Precious metal prices inched higher Friday on safe-haven buying and a flat dollar. U.S. stocks stalled near record levels as Wall Street's bullish momentum fizzled out this week.

Bloomberg--"Gold prices climbed to a one-week high as the dollar and real U.S. Treasury yields declined, with investors weighing prospects for a fast-tracked stimulus package in the U.S.

The metal climbed for the third straight day, the longest rally since Jan. 5, after Democrats released the first draft of key legislation that will comprise President Joe Biden’s Covid-19 relief bill. Bets on a robust package of support are helping to underpin market-derived inflation expectations, which are at multiyear highs, and have fanned the so-called reflation trade.

'It seems there's some liquidation by traders as gold approached the 200-day moving average level,' Bart Melek, head of commodity strategy at TD Securities....

'Rising breakevens and today's dollar weakness will attract renewed interest back into gold and also silver, given the pull from rising copper and platinum prices,' said Ole Hansen, head of commodity strategy at Saxo Bank A/S.

'Speculators are carrying a light load in both gold and silver, but for now we need to see the yellow metal break the double top around $1,875 in order to attract renewed momentum.'"