Gold prices climbed higher on Tuesday, recovering from early weakness, amid rising prospects for a coronavirus stimulus plan sometime in the foreseeable future.

The dollar’s slide supported the yellow metal.

Trader were also looking ahead to the Federal Reserve’s monetary policy announcement, due on Wednesday.

The dollar index slid to 90.42, losing nearly 0.3%.

Gold futures for February ended higher by $23.20 or about 1.3% at $1,855.30 an ounce, the highest settlement since December 2.

Silver futures for March moved up $0.597 or 2.5% to $24.644 an ounce, while Copper futures for March settled at $3.5445 per pound, gaining $0.0180 or 0.5%.

In economic news, a report from the Labor Department showed import prices in the U.S. saw a modest increase in the month of November, inching up by 0.1%, as against expectations for a 0.3% increase. Import prices had edged down by 0.1% in October.

Meanwhile, the report said export prices advanced by 0.6% in November after rising by 0.2% in the previous month. Export prices were expected to increase by 0.3%.

A report released by the Federal Reserve Bank of New York showed regional manufacturing activity edged slightly higher in the month of December.

The New York Fed said its general business conditions index slipped to 4.9 in December from 6.3 in November. Economist had expected the index to edge down to 5.8.

A report from the Federal Reserve showed industrial production climbed 0.4% in November following a downwardly revised 0.9% advance in October. Economists had expected industrial production to rise by 0.3% compared to the 1.1% jump originally reported for the previous month.

On the stimulus front, House Speaker Nancy Pelosi’s Deputy Chief of Staff Drew Hammill noted that the Democratic leader spoke with Treasury Secretary Steven Mnuchin about a coronavirus relief bill in a phone conversation Monday night.

The proposal calls for a previously unveiled $908 billion bipartisan relief plan to be split into two proposals that could be voted on separately in order to win approval.

One bill would be a $748 billion measure including money for small businesses, the jobless and COVID-19 vaccine distribution, while the other would include more controversial measures such as liability protections for business and aid for state and local governments.

According to a report from CNBC, Pelosi has invited her fellow congressional leaders to a meeting Tuesday to try to strike deals to fund the government and send another round of coronavirus relief.

A source familiar with her outreach told CNBC that Pelosi has invited Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy.


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