Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Gold rose after the U.S. House passed a bill to increase domestic checks to $ 2,000, a proposal backed by President Donald Trump that increases the rising cost of pandemic relief measures. The dollar gave way.
The plan to increase payments by $ 600 is in line with Trump’s surprise request last week, when he threatened to reject the entire spending package. The dollar weakened after the House supported the plan, which would increase family aid spending by about $ 464 billion.
Gold is headed for its first monthly gain in five, as optimism about coronavirus vaccines gives way to new bets on inflation and a weaker dollar. The economic turmoil and increased spending on global stimulus helped move gold toward its best year since 2010.
With turnover still weak in the holiday season, “precious metals traders were following the US dollar’s guidance in the absence of new key drivers,” wrote Philip Futures in a note. The U.S. currency hit the lowest rate since 2018 earlier this month.
Spot gold rose 0.3% to $ 1,878.79 an ounce at 10:46 am in Shanghai, after a volatile day on Monday that ended with a 0.5% loss
The House vote brings another twist at the end of the year for Washington, which disputes pandemic spending. Senate Republicans who previously opposed greater relief checks now need to weigh the proposal supported by their outgoing president.
Silver rose 0.6% after ending Monday with the highest value since September, while platinum and palladium also gained.
– With the help of Martin Ritchie