Can gold prices hold above $1,800? [Video]

Gold prices hovered close to a one-week high on Wednesday, boosted by comments from Federal Reserve Chair Jerome Powell that the U.S. economy still needed support.

Powell told the U.S. Senate Banking Committee that monetary policy still needed to be accommodative with economic recovery "uneven and far from complete". His remarks indicated that the need for further monetary and fiscal expansion is unlikely to go away anytime soon.

A depreciating U.S. dollar, money-printing, low interest rates and the risk of inflation as a result of stimulus measures will continue to remain bullish drivers for gold.

Elsewhere, Silver prices held firmly above $27 an ounce on Wednesday, after briefly rising above $28 an ounce in the previous session. Silver was a favourite with traders last year as the precious metal rallied nearly 60% – and still remains one to watch in 2021.

Looking ahead, traders have shifted their attention to the $1.9 trillion coronavirus relief package that is expected to pass later this week. Other key events that traders will be watching closely for clues on gold’s next big move include; U.S Q4 GDP and the Fed's preferred gauge for inflation – Core PCE price data.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: