Gold futures settled higher on Wednesday, extending gains from previous session, as the dollar continued to stay weak on rising hopes about U.S. fiscal stimulus.
The dollar index, which recovered after early weakness to hit a high of 91.50, subsequently retreated and was last seen at 91.14, down nearly 0.2% from the previous close.
Gold futures for February ended higher by $11.30 or about 0.6% at $1,830.20 an ounce.
Silver futures for March ended down $0.014 at $24.066 an ounce, while Copper futures for March settled at $3.4890 per pound, up $0.0040 from the previous close.
Federal Reserve Chair Jerome Powell and U.S. Treasury Secretary Steven Mnuchin both backed more fiscal stimulus to bridge the economy through the next few months of the pandemic.
In Senate testimony on Tuesday, Powell suggested that more fiscal stimulus would be needed in addition to the central bank's monetary support.
"Some fiscal support now would really help move the economy along" and guard against downside risks, particularly to small businesses, Powell told the Senate Banking Committee Tuesday during a joint appearance with the Treasury chief.
Mnuchin also said he supported "targeted, quick relief."
U.S. Treasury yields slipped after a $908 billion bipartisan economic stimulus plan was rejected by Senate Majority Leader Mitch McConnell.
A report from payroll processor ADP showed private sector employment in the U.S. increased by less than expected in the month of November.
The report said private sector employment rose by 307,000 jobs in November after climbing by an upwardly revised 404,000 jobs in October. Economists had expected employment to increase by 410,000 jobs compared to the addition of 365,000 jobs originally reported for the previous month.
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