Gold Set to Post Highest Weekly Gain in Over 11 Years
Arslan Butt • 1 min read
Gold prices have slid lower after touching the highest level in two weeks during the previous session as traders restored to profit taking in the precious metal over hopes for more stimulus measures. At the time of writing, GOLD is trading at a little above $1,624.
Gold is all set post the largest weekly gain in over 11 years, with prices having risen by 8.2% so far this week. The surge in jobless claims in the US and reports about Trump’s fiscal stimulus efforts getting ready lent further support to prices, aiding the bullishness.
After the coronavirus stimulus bill was passed the US Senate on Wednesday, the House of Representatives is expected to vote on it when it meets later today. President Donald Trump has already assured markets that he will sign off on it as soon it reaches him, which means the $2 trillion stimulus measures are getting closer to being rolled out.
In addition, the market sentiment received a boost after G20 leaders pledged to inject over $5 trillion to boost the global economy and overcome any potential fallout from the coronavirus pandemic in the form of losses to jobs and businesses. The improvement in market sentiment has once again boosted the safe haven appeal of gold instead of driving investors towards cash in search of higher liquidity.