Gold extends decline on dollar strength as stimulus faces debate

Getting support: A goldsmith arranges jewellery at his shop in Najaf, Iraq. The metal is staying above US$1,800 an ounce and is expected to receive support from massive stimulus packages from central banks and governments. — Reuters

NEW YORK: Gold extended declines on a stronger dollar and the currency’s outlook, while investors assess the timeline for the US stimulus package.

Former Federal Reserve chair Janet Yellen is expected to affirm the US’ commitment to market-determined exchange rates when she testifies on Capitol Hill today, and she will make clear the US doesn’t seek a weaker dollar for competitive advantage, according to a report from the Wall Street Journal citing people familiar with the preparation. The dollar has climbed in the past two weeks.