Gold Up, Amid Senate Delay on U.S. Stimulus Checks Increase Vote By

© Reuters.

By Gina Lee – Gold was up on Wednesday morning in Asia, boosted by a weaker dollar. Investors are also digesting the news that U.S. Senate Majority Leader Mitch McConnell postponed a vote on increasing the amount of U.S. stimulus checks.

were up 0.32% at $1,888.85 by 11:40 PM ET (4:40 AM GMT). The {{8827|dollar}, which usually moves inversely to gold, was down on Wednesday morning.

“A weaker dollar is enough to create a small upward momentum for confidence to be maintained in gold,” AirGuide director Michael Langford told CNBC.

McConnell delayed a vote on increasing the amount on the stimulus checks from $600 to $2,000 on Tuesday, after the House of Representatives and President Donald Trump both approved the increase earlier in the week.

However, Treasury Secretary Steven Mnuchin said that distribution of the approved $600 stimulus checks would begin as soon as Tuesday evening.

The Federal Reserve also extended the end date for its Main Street Lending Program by eight days to Jan. 8, in order to process a flood of applications that were submitted since Mnuchin ended the central bank’s emergency credit facility in November.

All eyes are now on runoff elections in Georgia, due to take place on Jan. 5, that will determine whether the Democrats or Republicans control the Senate.

Should the elections result in victory for the Democrats, expectations of a continuous loose fiscal policy will weigh on the dollar and be bullish for precious metals, Phillip Futures senior commodities manager Avtar Sandu said in a note.

Meanwhile, COVID-19 vaccine rollouts continue globally, with the European Union set to purchase a further 100 million doses of BNT162b2, the vaccine developed by Pfizer Inc (NYSE:) and BioNTech SE (F:).

The number of global COVID-19 cases continues an incessant increase. The U.S. has also reported its first case of the B177 strain of the COVID-19 virus, first seen in southeastern England in September.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
s.parentNode.insertBefore(t,s)}(window, document,’script’,
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by :

Source link

Capital Media

Read Previous

A Peace Plan, Oil Shock, and Crisis”

Read Next

‘Boris the betrayer’ has swindled us over Brexit, England’s fishermen say By Reuters