Gold Bulls Take Heart From the Fed’s Resolve as Dollar Buckles
- U.S. central bank pledges to maintain asset-purchase program
- Congressional leaders pushing to finalize fiscal stimulus deal
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Gold rose to a one-month high after the Federal Reserve reiterated its commitment to supporting the economy and optimism grew that a virus-relief package will soon be delivered by U.S. lawmakers.
The Fed promised at its final policy meeting of 2020 to maintain its massive asset-purchase program until it sees “substantial further progress” in employment and inflation. Chair Jerome Powell said that the case for fiscal stimulus is “very, very strong.” Congressional leaders are working through the final sticking points of a coronavirus relief deal, although the agreement probably won’t come together in time for both chambers to vote before Friday.