Gold Supported by Hopes For Large Stimulus Package, NFP Report
Gold is starting the brand new trading week on a slightly bullish note, strengthening on the back of a weakness in the US dollar amid hopes
Gold is starting the brand new trading week on a slightly bullish note, strengthening on the back of a weakness in the US dollar amid hopes for a large fiscal stimulus package to prop up the US economy. At the time of writing, GOLD is trading at a little above $1,962.
After winning the US presidential election, Joe Biden and his team has already started working on tackling the ongoing coronavirus crisis in the country and expectations are high that the government could soon roll out a larger relief package. Expectations for more stimulus to support the US economy is supporting the safe haven appeal of gold in markets for now.
Gold has also received a boost from the release of the NFP report last Friday which revealed a reduction in the number of new jobs created in the US during the month of October. With more Americans working part time, the labor market is seeing signs of strain, which could impede economic recovery in the coming months.
The yellow metal also remains in favor as the number of fresh coronavirus cases continue to climb higher across the US and Europe, with total confirmed cases crossing the 50 million mark as on Sunday. In addition, uncertainties surrounding the post-Brexit trade deal between the EU and Britain are also helping strengthen the demand for gold in markets.
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