Gold prices edged lower on Thursday as the dollar resumed its rebound from 2018 lows amid speculation that any spikes in U.S. inflation could lead to the Federal Reserve tapering its bond-buying program.
Spot gold slipped 0.2 percent to $1,840.83 per ounce, while U.S. gold futures were down 0.9 percent at $1,838.90.
U.S. Treasury yields also rebounded from losses in the previous session as investors awaited the details of the stimulus plan to be unveiled by U.S. President-elect Joe Biden later in the day.
The package is expected to include $2,000 in stimulus checks, funding to state and local governments and other emergency spending measures. CNN reported that Biden is mulling huge spending package worth about $2 trillion.
Also, Fed Chairman Jerome Powell will speak later in the day in a virtual event.
The U.S. economy grew “modestly” in the final weeks of 2020, though a resurgence in Covid-19 cases prompted activity in some sectors to slow, a Federal Reserve report said Wednesday.
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