Gold Hits a Two-month High After Trump Signs the Economic Stimulus Package

After US President Donald Trump signed an economic stimulus plan, the gold price reached its highest level in the last seven weeks. The plan involves the injection of more than 900,000 million dollars into the US economy in response to the crisis caused by the pandemic. 

According to Bloomberg reports, gold and silver prices have continued to rise for the fourth consecutive week.

The firm puts an end to the uncertainty that had been unleashed in recent weeks. The acting president had so far refused to sign the plan. He had disagreements over the amount of aid destined for households.

The aid plan has caused a new collapse of the dollar. The Dollar Index, which compares the US currency with the euro, the British pound, the Swiss franc, the Swedish krona, the Japanese yen, and the Canadian dollar, is now at 89.94. After losing another 0.2%, it is close to its 12-month low.

Uncertainties about the economic stimulus package have been further boosting precious metal prices

This has further contributed to boosting gold and silver prices. The yellow metal is about to register its first monthly revaluation since last July.

In the following months, gold lost part of the gains for the year due to the investors’ optimism regarding the vaccines against the coronavirus pandemic. 

In any case, so far in 2020, the precious metal price remains optimistic. That is thanks to the significant rise since it bottomed out last March. Both the weak dollar and the unprecedented fiscal and monetary stimulus measures taken by governments and central banks have contributed to strengthening the precious metal price.

Following the signing of the package of measures by Trump, the spot price of gold rose 0.7% to $ 1,896.70 an ounce, its highest level since last November 6.

For its part, silver rose 3.6% and was trading at $26.76 an ounce early in the morning.

The US economy’s stimulus package will be Donald Trump’s last legislative act as president of the United States. Incoming President Joe Biden is expected to approve further measures in this regard in early 2021.