Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
Gold hit its highest close in seven weeks after President Donald Trump signed a $ 900 billion coronavirus stimulus package, pumping more government money into the world’s top economy. Silver rose.
The port built on a string of four weekly gains following the breakthrough on the package, which Trump had initially refused to endorse amid a dispute over the size of the checks to support households during the pandemic. The dollar declined.
Bullion will record its first monthly profit since July after a string of losses from the development of effective coronavirus vaccines. Throughout 2020 as a whole, gold has benefited from a steady weakening of the U.S. currency since its March peak, as well as unprecedented fiscal and monetary stimulus.
Spot gold rose a whopping 0.7% to $ 1,896.70 an ounce and traded at 9:45 am in Singapore at $ 1,894.02. That would be the highest closing price since November 6. Immediate delivery silver was up a whopping 3.6% to $ 26.7601 an ounce. The Bloomberg Dollar Spot Index fell a whopping 0.2%.
The aid package will likely be the last major legislation signed by Trump, whose hopes of reelection have been largely undermined by his handling of the pandemic. President-elect Joe Biden has said he will push for even more stimulus after taking office early next year.
– With help from Jake Lloyd-Smith