Gold Jumps as Mnuchin Says Treasury, Fed Have Plenty of Capacity
- Bullion-backed fund holdings are at the lowest in two months
- Prices have been pressured by optimism over vaccines
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Gold jumped after U.S. Treasury Steven Mnuchin said his agency and the Federal Reserve have enough firepower to continue to support the economy.
The comments came a day after Mnuchin called for several emergency lending programs to expire by the end of the year. “Markets should be very comfortable that we have plenty of capacity left,” Mnuchin said Friday on CNBC. He also said he’ll talk with Senate Majority Leader Mitch McConnell and House GOP leader Kevin McCarthy on Friday about about a strategy for an approach to Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer.