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PRECIOUS-Gold edges up on stimulus prospects under Biden Administration

Published 2021-01-07, 08:02 p/m

Jan 8 (Reuters) - Gold prices rose on Friday and were set to post a second straight weekly gain, as hopes for additional U.S. fiscal stimulus under incoming President Joe Biden boosted the metal's appeal.

FUNDAMENTALS

* Spot gold XAU= climbed 0.1% to $1,913.91 per ounce by 0042 GMT and was up 0.8% so far this week. U.S. gold futures GCv1 gained 0.2% to $1,916.80.

* With control over the U.S. Senate, Democrats have more power to advance Biden's agenda from coronavirus relief to infrastructure spending. A recent rise in U.S. bond yields and market inflation expectations has bolstered Federal Reserve officials' hopes that the central bank's new monetary policy approach is taking hold and could be further buoyed if Congress rolls out more spending. Bullion is considered a hedge against inflation and currency debasement likely to result from large stimulus.

* President Donald Trump conceded on Thursday that Biden will be the next U.S. president, a day after his supporters stormed the U.S. Capitol as Congress was certifying Biden's victory in a stunning assault on American democracy. The number of Americans filing first-time claims for jobless benefits unexpectedly dipped last week while staying extremely high, with the labour market recovery appearing to stall as a raging pandemic overwhelms the country. U.S. Federal, state and local officials sought to speed up slow-moving vaccinations on Thursday, a day after a record 4,000 Americans died. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , fell 0.4% to 1,182.11 tonnes on Thursday. GOL/ETF

* Silver XAG= rose 0.1% to $27.12 an ounce. Platinum XPT= eased 0.2% to $1,115.11, while palladium XPD= gained 0.1% to $2,421.76. DATA/EVENTS (GMT) 0700 Germany Industrial Output MM

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