2020.12.1709:41:00UTC+00Gold Rises As Dollar Weakens On Stimulus Optimism

Gold prices rose on Thursday and the dollar weakened as U.S. lawmakers neared a $900 billion deal for another rescue package and the Federal Reserve pledged to maintain its bond-buying programs until the economy returns to full employment.

Spot gold rose 0.7 percent to $1,876.94 per ounce, while U.S. gold futures were up 1.2 percent at $1,880.50.

Investors believe that large amounts of liquidity provided by central banks will continue to remain abundant to support the nascent recovery.

The focus remains on talks on the U.S. stimulus package as a Friday deadline loomed.

There was no deal quite yet but both Democrats and Republicans are anxious to approve some aid before going home for the year.

The Federal Reserve said Wednesday that it will keep pouring cash into financial markets until the economy makes substantial progress.

Elsewhere, European Union lawmakers approved the bloc's 1.8 trillion-euro ($2.2 trillion) stimulus package on Wednesday, clearing the path for a much-needed injection of funds.