Gold rises over 1% on expectations of large U.S. stimulus package

Gold last traded at $1,837 an ounce. Silver at $27.38 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on bargain-hunting and a weaker dollar. U.S. stocks traded mostly lower as investors took profits following a strong rally based on optimism for a smooth reopening and Covid vaccine rollout.

 CNBC--"Gold prices jumped more than 1% on Monday as expectations of a large U.S. stimulus package bolstered bullion's appeal as an inflation hedge....

President Joe Biden and his Democratic allies in Congress cleared the path for their $1.9 trillion COVID-19 relief package as lawmakers approved a budget outline that will allow them to muscle the plan through without Republican support.

U.S. Treasury Secretary Janet Yellen said on Sunday the country would get back to full employment next year if Congress approves the stimulus package.

'Yellen talking about full employment by 2022 with $2 trillion in stimulus is driving the likelihood of a surge in inflation, which is good for gold,' said Tai Wong, head of base and precious metals derivatives trading at BMO....

The 'inflation trade' could supersede any negative impact the dollar might have on gold and silver, said Jim Wyckoff, senior analyst with Kitco Metals."