Precious gold futures spikes 1 per cent as US stimulus bet breeds

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Precious gold futures spikes 1 per cent as US stimulus bet breeds

Amid a prudent rise in hopes that a US pandemic relief bill would be passed before the November 3 election day, the precious safe-haven gold futures’ prices gained over 1 per cent on Wednesday, anchoring at its highest level in more than a week as a softer American Dollar had bolstered the bullion’s safe-haven bid further.

In point of fact, Wednesday’s gains of the spot gold futures’ prices were almost entirely prodded by the optimisms over a US stimulus bill, while the market participants’ hope had attained further bullish wind following an extension of a Tuesday deadline for the US relief bill to Friday.

Gold gains as weak Dollar leads to a rise in the bullion’s safe-haven bid

Meanwhile, referring to an extension of the US stimulus deadline to Friday, a chief strategist at US Global Investors, Michael Matousek said in the day’s commodity market round off, “Nancy Pelosi had a Tuesday deadline.

Well, now it’s been pushed down to Friday. Knowing that, people think a deal might get done in the near future, so they’re starting to accumulate gold. Nonetheless, the White House Chief of Staff Mark Meadows was quoted saying late in the day that still there had been a number of differences among the White House and the bipartisan Congressional lawmakers, however, Meadows affirmed that progresses were being made towards a relief bill.

Citing statistics, in the day’s commodity market round off, the spot gold futures’ prices climbed 1.1 per cent to $1,926.76 an ounce after breaching its highest level since October 12 earlier in the day, while the US gold futures gained 0.8 per cent to wind up the day at $1,931.10.

Among other precious metals, silver futures surged 1.9 per cent to $25.10 an ounce, while platinum rose 1.8 per cent to $886.45 per ounce and palladium edged up 0.2 per cent to $2,403.48 an ounce. In factuality, last week, the Trump Administration had agreed to a $1.8 trillion in stimulus bill, which fell short of the Democrats’ expectation of a $2.2 trillion relief bill, while a number of Senators also raised questions over the feasibility of such large-scale stimulus just days after the Trump Administration had reported a record budget deficit of $3.1 trillion over the last fiscal year that ended on September 30, compounding the narratives further.