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.