2021.01.2018:29:00UTC+00Gold Futures Settle Sharply Higher

Gold prices moved higher on Wednesday as the dollar weakened amid rising hopes about the new U.S. government under Joe Biden will announce additional stimulus sometime soon to boost economic recovery.

The dollar index slipped to a low of 90.28 in the Asian session. However, it recovered well and rose to 90.70 around mid morning, and was last seen at 90.47, down just marginally from previous close.

Gold futures for February ended higher by $26.30 or about 1.4% at $1,866.50 an ounce, the highest close in about two weeks.

Silver futures for March ended up $0.446 at $25.766 an ounce, while Copper futures for March settled at $3.6415 per pound, gaining $0.0080.

Biden, who was sworn-in as the 46th President of the U.S., has called for additional stimulus and an accelerated coronavirus vaccine rollout, which has helped offset concerns about higher taxes and increased regulation under a Democratic administration.

Already, new U.S. Treasury Secretary Janet Yellen has pledged to "act big" on stimulus to reinvigorate the economy hit by the coronavirus pandemic.

In economic news, a report from the National Association of Home Builders showed an unexpected drop in U.S. homebuilder confidence in the month of January.

The report said the NAHB/Wells Fargo Housing Market Index fell to 83 in January after sliding to 86 in December. The continued decline surprised economists, who had expected the index to come in unchanged.

With the unexpected decrease, the housing market index pulled back further off the record high of 90 set in November.