Gold Heads for Best Close in Six Weeks as Trump Signs Stimulus
A gold ingot in Russia. (Photographer: Andrey Rudakov/Bloomberg)

Gold Heads for Best Close in Six Weeks as Trump Signs Stimulus

Gold headed for the highest close in six 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 fell.

Gold Heads for Best Close in Six Weeks as Trump Signs Stimulus

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 unprecendented fiscal and monetary stimulus.

Spot gold rose as much as 0.9% to $1,900.31 an ounce, and traded at $1,886.29 at 7:49 a.m. in London. That would be the highest close since Nov. 16. Silver for immediate delivery rallied as much as 3.6% to $26.7714 an ounce. The Bloomberg Dollar Spot Index fell as much as 0.3%.

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.

©2020 Bloomberg L.P.

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