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Gold Up, Investors Book Profits in Wake of Stimulus Hopes-Induced Price Rise

Published 01/20/2021, 10:50 PM
Updated 01/20/2021, 10:52 PM
© Reuters.

By Gina Lee

Investing.com – Gold was up on Thursday morning in Asia. However, the yellow metal eased from a two-week high, with investors booking profits after prices jumped during the previous session over hopes of a massive U.S. stimulus package under the newly inaugurated Joe Biden administration.

Gold futures were up 0.2% at $1,871.50 by 10:50 PM ET (3:50 AM GMT). The dollar was down on Thursday.

Biden signed 15 executive orders on Wednesday after the inauguration ceremony covering COVID-19, climate change, and immigration among other issues, and stated “these are just all starting points.” Investors are also looking to see if Biden’s $1.9 trillion stimulus plan will be implemented now that he has the keys to the White House.

Central banks globally also kept busy, with the Bank of Japan keeping its interest rate unchanged as it handed down its policy decision earlier in the day. The People’s Bank of China also kept its loan prime rate steady at 3.85%.

The European Central Bank is widely expected to keep its easy money policy unchanged when it hands down its own policy decision later in the day. However, the central bank is widely expected to be open to further stimulus measures as the second wave of COVID-19 cases dims an already weak outlook.

On the COVID-19 front, the World Health Organization plans to approve several COVID-19 vaccines from Western and Chinese manufacturers in coming weeks and months, it said in a document published on Wednesday.

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