Gold ends at a nearly 2-week high on talk of further U.S. fiscal stimulus

Gold futures climbed on Wednesday, notching their highest finish in nearly two weeks, as expectations for further fiscal stimulus measures under the Biden administration pressured the U.S. dollar, boosting  prices for the dollar-denominated precious metal.

The market expects additional fiscal stimulus measures to be “announced very soon,” providing support for gold, said Chintan Karnani, chief market analyst at Insignia Consultants. In testimony to the Senate Financial Committee Tuesday, President Joe Biden’s nominee for head of the Treasury Department, Janet Yellen said the U.S. should “act big” on the economy. 

More government spending would create more debt, which would lead to a weaker dollar, which can boost prices for gold. The greenback was little changed Wednesday, as measured by the ICE U.S. Dollar Index DXY, -0.04%, but traded lower for the week so far.