The Cleveland Fed president said the economy will continue to need strong government support this year, and suggested she believes monetary policy is currently set at an appropriate level.
Gold - Jan 8, 2021 - Reliance Securities
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Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices are trading lower on Friday morning and early afternoon trade in Asia.
However hopes for further U.S. stimulus buoyed the yellow metal.
Investors will also be looking at the U.S. jobs report, including non-farm payrolls, which will be released later in the day on whether significantly more stimulus will be needed to keep the economic recovery alive.
Meanwhile, statements from Fed officials were mixed.
Federal Reserve Bank of Cleveland President Loretta Mester said she didn t believe that the increased fiscal stimulus under Biden would mean a pull-back on monetary policy in 2021.
Gold headed for a sixth weekly advance, the longest run since August, as investors focused on the prospect for more stimulus. They will also be watching for Friday’s jobs report, which is forecast to show a sharp slowdown in hiring.