Gold Set for Best Close in Seven Weeks as Trump Signs Stimulus

Gold headed for the highest close in seven weeks after President Donald Trump signed a $900 billion coronavirus stimulus package, pumping more state funds into the world’s top economy. Silver surged.

The haven built on a run of four weekly gains following the breakthrough on the package, which Trump had initially declined to endorse amid a dispute on the size of checks to support households amid the pandemic. The dollar eased.

A selection of gold bars of various weights sit at Gold Investments Ltd. bullion dealers in this arranged photograph in London, U.K., on Wednesday, July 29, 2020. Gold held its ground after a record-setting rally as investors awaited the outcome of a Federal Reserve meeting amid expectations policy makers will remain dovish, potentially spurring more gains. Photographer: Chris Ratcliffe/Bloomberg

Bullion is set to post the first monthly gain since July after a run of losses prompted by the development of effective coronavirus vaccines. Over 2020 as a whole, gold has benefited from a steady weakening of the U.S. currency since it peaked in March, as well as from unprecedented fiscal and monetary stimulus.

Spot gold rose as much as 0.7% to $1,896.70 an ounce, and traded at $1,894.02 at 9:25 a.m. in Singapore. That would be the highest close since Nov. 6. Silver for immediate delivery rallied as much as 3.6% to $26.7601 an ounce. The Bloomberg Dollar Spot Index fell as much as 0.2%.

The relief package will likely be the last major legislation signed by Trump, whose re-election hopes were dashed in large part due to his handling of the pandemic. President-elect Joe Biden has said he will push for even more stimulus after taking office early next year.

Bloomberg News – Read Original Story Here

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