Gold Jumps More Than $20 on Fed, Stimulus Expectations

Gold prices jumped more than $20 an ounce for their biggest one-day gain in a week, ahead of a Federal Reserve meeting on Wednesday and as lawmakers moved again to try and get Covid-19 relief through Congress after multiple failed attempts.

Gold for February delivery on New York’s Comex settled Tuesday’s trade up $23.20, or 1.3%, at $1,855.30 an ounce. In the previous session, it lost almost $11 to settle at a two-week low as a fiscal deal for the pandemic remained out of reach.

The spot price of gold, which algorithms and hedge funds use to decide the direction for futures, was up $27.40, or 1.5%, to $1,854.61 by 4:00 PM ET (21:00 GMT).