Gold prices gained a leg higher on Tuesday, reacting to U.S. Treasury Secretary nominee Janet Yellen’s plans to fight the coronavirus-induced economic crisis with big spending. Gold for February delivery on New York’s Comex settled up $10.30, or 0.6%, at $1,851.40 per ounce. The benchmark gold futures contract had been caught in a wave of irrational selling lately, losing 3.5% over the past two weeks, as U.S. bond yields spiked on contrarian bets made by traders against looming multi-trillion dollar stimulus plans. Yellen, a former chair of the Federal Reserve, said at her Senate confirmation hearing that lawmakers in Congress had to “act big” on stimulus to facilitate economic recovery from the Covid-19 pandemic. The nominee of President-elect Joe Biden, who begins his four-year term Wednesday, said the longer-term benefits of stimulus outweighed the costs, especially with near-zero interest rates making borrowing super cheap for U.S. business. While gold is generally deemed a safe haven, the yellow metal rallied on Tuesday along with an array of risk assets from stocks to oil. The yield on the benchmark U.S. 10-year Treasury note surrendered an early run higher to show a drop of 5.0 basis points. The drop in yields weighed on the dollar, aiding gold’s climb. The Dollar Index, which stacks the greenback against six competing major currencies, was down 0.3%, holding just under the key 90.5 level.