Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Gold plunged higher after the U.S. House passed a bill to raise house checks to $ 2,000, a proposal backed by President Donald Trump that will raise pandemic relief measures. The dollar eased.
The plan to raise payments from $ 600 is in line with Trump’s surprise request last week when he threatened to reject the full spending package. The dollar weakened after the House he backed the plan, which raised spending on housing relief of about $ 464 billion.
Gold is leading for the first monthly gain in five as optimism about coronavirus vaccines offers a chance to renew rebound on inflation and a weaker dollar. Economic turmoil and global stimulus spending have helped carry gold towards its best year since 2010.
With trade volumes still thin in the holiday season, “precious metals traders were taking the lead from the U.S. dollar without new fundamental drivers,” Philip Futures wrote in a note. The U.S. currency hit its lowest level since 2018 earlier this month.
Spot gold rose 0.3% to $ 1,878.79 an ounce at 10:46 am in Shanghai, following Monday’s volatile day that ended with a 0.5% loss
The House vote brings another turnaround at the end of the year for Washington raising money about pandemics. Senate Republicans who previously opposed larger relief studies now have to press for the proposal with support from the outgoing president.
Silver rose 0.6% after ending Monday at its highest level since September, as did platinum and palladium.
– Supported by Martin Ritchie