Gold Traders Wait for Yellen to Weigh In on Dollar and Stimulus

Janet Yellen, former chair of the U.S. Federal Reserve, attends the Bloomberg New Economy Forum in Singapore, on Tuesday, Nov. 6, 2018. The New Economy Forum, organized by Bloomberg Media Group, a division of Bloomberg LP, aims to bring together leaders from public and private sectors to find solutions to the world's greatest challenges.
Janet Yellen, former chair of the U.S. Federal Reserve, attends the Bloomberg New Economy Forum in Singapore, on Tuesday, Nov. 6, 2018. The New Economy Forum, organized by Bloomberg Media Group, a division of Bloomberg LP, aims to bring together leaders from public and private sectors to find solutions to the world's greatest challenges.

(Bloomberg) -- Gold steadied as investors awaited commentary from Treasury Secretary nominee Janet Yellen on the dollar and stimulus when she testifies on Capitol Hill a day ahead of Joe Biden’s inauguration as president.

Yellen’s Senate confirmation hearing is likely to feature foreign-exchange policy, and will also serve as the first congressional forum where lawmakers will vet Biden’s $1.9 trillion Covid-19 relief plan, parts of which have already drawn opposition. Earlier, the Wall Street Journal reported Yellen is expected to affirm the U.S.’s commitment to market-determined exchange rates.

Bullion has fallen more than 3% this year as benchmark Treasury yields and the greenback climbed on forecasts that coronavirus vaccines and stimulus packages will aid the economic recovery. In early Asian trade on Tuesday, a gauge of the currency was steady after climbing over the past two weeks.

Spot gold was little changed at $1,839.06 an ounce at 8:43 a.m. in Singapore, after rising 0.7% on Monday. Silver fell, palladium was flat, and platinum gained. The Bloomberg Dollar Spot Index rose 0.2%.

Traders are also monitoring President Donald Trump’s last full day in office, when he may issue a slew of pardons. Biden’s swearing-in at the U.S. Capitol on Wednesday will come amid an unprecendented level of security given the still-simmering threats of violence in Washington.