2020.04.2311:08:00UTC+00Gold Hits One-week High On Stimulus Expectations

Gold prices rose on Thursday to hover near one-week high amid expectations that global central banks would unveil more support measures to limit the economic damage from the coronavirus pandemic.

Spot gold rose 0.8 percent to $1,727.66 per ounce, while U.S. gold futures were up 0.7 percent at $1,751.30.

The White House will give final passage to a $484 billion package of new pandemic relief funds today.

U.S. President Donald Trump said he will sign the bill and then plans to begin discussions on additional legislation to provide fiscal relief for states and local governments, increase infrastructure spending, provide tax incentives for restaurants and entertainment businesses and cut payroll taxes.

Mexico said it will increase spending on social programs and infrastructure projects by $25.6bn, in a bid to jump-start the coronavirus-hit economy.

China is expected to roll out additional policies to prevent short-term economic shocks from becoming long-term stagnation trends.

Escalating tensions between United States and Iran also attracted safe haven demand for gold.