Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
Gold headed for the highest close in seven weeks after President Donald Trump signed a $ 900 billion coronavirus stimulus package, injecting more state funds into the world economy. The silver rose.
The refuge grew in a series of four weekly gains after the package was discovered, which Trump initially refused to endorse amid a dispute over the size of checks to support families in the midst of the pandemic. The dollar gave way.
Bullion is expected to record its first monthly gain since July, after a series of losses caused by the development of effective vaccines against the coronavirus. Throughout 2020 as a whole, gold has benefited from a steady weakening of the U.S. currency since its peak in March, as well as unprecedented fiscal and monetary stimuli.
Spot gold was up 0.7% to $ 1,896.70 an ounce and traded at $ 1,894.02 at 9:25 am in Singapore. That would be the biggest closure since November 6. Silver for immediate delivery was up 3.6% to $ 26.7601 an ounce. The Bloomberg Dollar Spot Index fell by 0.2%.
The aid package is likely to be the last major legislation signed by Trump, whose hopes of re-election have been dashed in large part due to the way he handled the pandemic. President-elect Joe Biden said he would push for even more stimulus after taking office at the beginning of next year.
– With the help of Jake Lloyd-Smith