Gold futures aim to add to gains on Wednesday after a sharp rally in the session prior, with bullion buoyed by seasonal buying trends that have momentarily overshadowed a perkier dollar and lofty government bond yields.
Gold rose to an over one-week high on Wednesday on a soft dollar, while signs of progress in discussions over a new U.S. coronavirus relief package bolstered bullion's appeal as a hedge against possible inflation. Top Senate Republican Mitch McConnell urged the U.S. Congress to pass a $1.4 trillion spending bill including coronavirus stimulus, while some senators and House members proposed relief measures worth $908 billion. Spot gold rose 0.9% to $1,830.40 per ounce by 1038 GMT, having earlier hit $1,832.20, its highest since Nov. 24.
Gold futures bounce off a roughly five-month low on Tuesday, to log their sharpest one-day gain in more than three weeks to kick off the last month of 2020.