Gold weakened on Thursday and that happened at the same time with silver. The commodity is weighted by the strong USD and also the progress of further stimulus steps. The decision about stimulus is always waited by people.

The price of gold Is under $ 1,822.90. Meanwhile, the silver price was down after increased near the peak level in these eIght years period. That was in $ 30,03 at the beginning of the week. It was seen from the data.

The US dollar which is usually in reverse movement with gold is on its highest level on Wednesday. That is the peak level within two months so far. The good thing is that it continues the rise after the Asian session.

The Progress on Stimulus

Based on the data in the market, the Treasury result also increases and reaches the highest level for more than three weeks. How about the progress of stimulus? The progress of that package through the congress is continued.

The senators start to discuss and debate about the budget resolution for the 2021 fiscal year. That was happened on Tuesday. The first step to legalize the package recommended by Joe Biden was taken in January. However, it is not that smooth.

There is still a disagreement with the Republic party about the price tag. Furthermore, Biden said that he will consider the limits which are tighter than before. It is especially about the $1.400 which is requested on that package.

It is a fact that the monetary policy could support the long-term United States economic. However, more fiscal funds in a short-term period may be need to support the American economic during this coronavirus pandemic. That was said by the Loretta Mester Bank President.

The USA Payroll Report

Now, the investors are also waiting for the United States payroll report for January period. That is included the non-farm payrolls that will be released on Friday. The Bank of England finally releases its policy decisions on Thursday. What is it about?

Based on the information, it is generally about directing its sight in the economic recovery prospect in this 2021. Widely, so many people hoped that they will maintain the interest rate and the stable quantitative easing in the market.

That is why; the investors will find some clues about the possibility that the central bank will introduce the negative interest rate. Elsewhere, the support of gold is weakened and reaching the $ 1.800. It is happened under the sales wave. Why?

It is because that condition is pressed by the market recovery signs in the United States. Meanwhile, the covid-19 stimulus obstacle in the recent Biden government also becomes one of the causes. The movement data can be seen in the market.

Gold as a Hedge Commodity

So far, gold is known as the hedge for the debt accumulation and monetary expansion. However, some parties are doubting it since it was weakened on November. The worse thing was that the situation was continued to happen after that.

The breakthrough about coronavirus vaccine really supports the economic recovery from the past lockdown situation. That economy rebound is almost unable to do because of the increasing number of the positivity rate and slow distribution.

Those factors are not stopping the currency seller and debt to continuously anticipating the GDP growth. It is also about the stimulus decrease although the Federal Reserve always said that both of them will be not happened as quick as it is expected.

The dollar increase and treasury development happened after a data showed the United States jobless claim is decreased and slipped by 4% last week. It notes their third weekly decline and it shows the slight market recovery within the labor industry.