Gold was heading for the highest closing time in seven weeks after President Donald Trump signed a $ 900 billion coronavirus stimulus package that pumped more state funds into the world’s best economy. Silver rose.
The refuge built on four weekly gains following the breakthrough of the package, which Trump initially refused to endorse amid a dispute over the size of checks to support households amid the pandemic. The dollar eased.
Bullion is expected to be the first monthly gain since July after a number of losses caused by the development of effective coronavirus vaccines. Over 2020 as a whole, gold has benefited from the gradual weakening of the U.S. currency since peaking in March, as well as the unprecedented fiscal and monetary stimulus.
Spot gold rose 0.7% to $ 1,896.70 per ounce and traded against Singapore at $ 1,894.02 at 9:25 p.m. This would be the highest closing since November 6th. Silver for immediate delivery rose to 3.6% to $ 26.7601 per ounce. The Bloomberg Dollar Spot Index fell to 0.2%.
The emergency relief package is likely to be the last major piece of legislation signed by Trump, and the re-election hope has been largely thwarted by his handling of the pandemic. Elected President Joe Biden has said he will pursue even more stimulus after taking office early next year.
– With help by Jake Lloyd-Smith