Gold closed higher due to weak US dollar and new deadlock on US fiscal package

Gold closed higher due to weak US dollar and new deadlock on US fiscal package

The more liquid gold futures contract disrupted a sequence of three falling sessions and closed higher on Wednesday (23), benefiting from the weakening of the dollar, which makes commodities cheaper and, therefore, more attractive. Investors monitored the progress of the fiscal package in the United States, which US President Donald Trump threatened not to approve.

At Comex, the metal division of the New York Mercantile Exchange (Nymex), rose 0.42% to close at $ 1,878.10 per troy ounce for February delivery.

Last night, Trump surprised supporters by saying he could not sign an economic relief law passed by Congress on Monday if the text was not changed to increase the amount of direct payments to Americans from $ 600 to $ 2 Is thousand. Today, House Speaker Nancy Pelosi responded that it was always Democrats’ proposal, but Republicans blocked it.

Initially, gold fell shortly after the White House leader’s announcement, but fell as the dollar weakened. The strengthening of the euro and the pound put pressure on the US currency, given the possibility of the United Kingdom and the European Union closing a trade deal after Brexit, the island nation’s exit from the European bloc.

“Gold may be under control,” says analyst Gold Edward Moya, but if Republicans capitalize and the price of the stimulus package rises, the precious metal may cross $ 1,900 an ounce level. From Onda.

Canada has stopped mining of the Chinese state of Shandong from buying a gold mine in the Canadian Arctic, while Prime Minister Justin Trudeau faces increasing pressure to stem Beijing’s growing influence in the country and the polar region.

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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