Bullion slightly higher after swinging with dollar on Monday
Bill to boost pandemic relief heads to Senate after House vote
Gold ticked higher after the U.S. House passed a bill to boost household checks to $2,000, a proposal backed by President Donald Trump that ramps up the burgeoning cost of pandemic relief measures.
The plan to raise payments from $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 backed the plan, which would lift spending on household relief by about $464 billion.
Gold is headed for its first monthly gain in five as optimism over coronavirus vaccines gives way to renewed bets on inflation and a weaker dollar. Economic disruption and mounting global stimulus spending has helped carry gold toward its best year since 2010.
With trading volumes still thin in the holiday season, “precious metals traders were taking the cue of direction from the U.S. dollar in the absence of any new fundamental drivers,” Philip Futures wrote in a note. The U.S. currency hit the lowest since 2018 earlier this month.
Spot gold rose 0.3% to $1,879.34 an ounce at 11:19 a.m. in London, after a volatile day on Monday that ended with a loss of 0.5%
Silver rose 0.1%, while platinum and palladium also gained.
— With assistance by Martin Ritchie, and Thomas Biesheuvel
A woman wearing a dress made of cash, Germany, 1923.
THESE are the shocking images that reveal the full horror of hyperinflation in post Great War Germany ñ when money was literally worthless. In 1923, Germany was hit by one of the worst cases of hyperinflation in history, with 4.2 trillions marks worth just one American dollar. This out-of-control inflation began somewhat mildly during World War I, as the German government printed unbacked currency and borrowed money to finance military expenditures. The strategy was to pay off the debts by seizing resource-rich territories and imposing reparations on the vanquished Allies. But when Germany lost the war and ended up with massive debts, including huge reparations to be paid to the Allies under the Treaty of Versailles. The country found themselves in economic crisis and increasingly unable to afford the hefty reparation payments.
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