Gold advanced after its first weekly decline in four as US Treasury Secretary Janet Yellen said the president’s economic plan won’t stoke inflationary pressures. Palladium gained.
President Joe Biden’s economic plan is unlikely to create inflation pressure in the US because the boost to demand will be spread over a decade, Yellen, the former Federal Reserve chair, said Sunday on NBC’s “Meet the Press.”
The precious metal, which is down 6.5% this year, has clawed back some gains over the past month as central banks, including the US Fed last week, stick to dovish monetary policies. While the Fed said signs of inflation were transitory, assuaging fears of an early rate hike, strong US economic data continues to pressure havens.
“The US Federal Reserve vowing to continue with its dovish approach amid a lower greenback,” might provide some support for gold, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.
Gold rose 0.3% to $1 774.03 an ounce by 12:20 p.m. in Singapore after dropping 0.5% last week. Silver and platinum also climbed. Palladium gained 0.5% to $2 955.54 an ounce. The Bloomberg Dollar Spot Index was flat after climbing 0.7% Friday.
Japan, China and the UK are among the markets closed for holidays on Monday.