NEW YORK: Gold rose more than 1% on Wednesday on expectations that US President Joe Biden’s administration would increase stimulus measures to deal with the economic fallout of the coronavirus pandemic.

Spot gold was up 1.6% to $1,868.00 per ounce by 1:56 p.m. EST (1856 GMT), having touched more than a one-week high earlier. US gold futures settled up 1.4% at $1,866.50.

“Whether the feelings of comity will last the afternoon remain in question as Biden’s first acts will be to reverse some of his predecessor’s policies. Gold has had a very good day and a close here or even near $1,860 opens the door for $1,900,” said Tai Wong, head of base and precious metals derivatives trading at BMO.

Gold can still reach $2,000, probably by the middle of the second quarter, said Howie Lee, an economist at OCBC Bank.

Silver rose 2.2% to $25.75 an ounce, platinum climbed 2.3% to $1,108.05, while palladium rose 1.1% to $2,378.37.