Gold prices are climbing higher on the last trading day of the week over rising optimism about the Trump administration rolling out a new round of fiscal stimulus soon. At the time of writing, GOLD is trading at a little above $1,909.
After President Trump tweeted that talks with Democrats on the coronavirus relief package had been called off and the next round of financial postponed until after the November 3 elections, House Speaker Pelosi resumed discussions on it with Treasury Secretary Mnuchin. The increased likelihood of financial aid has sent the US dollar weaker and boosted the safe haven appeal of gold.
Gold shares a negative correlation with the US dollar as a stronger dollar makes the precious metal more expensive for holders of other currencies. The US dollar index is set to post a decline for the second consecutive week, supporting prices.
The World Gold Council revealed that the rally in prices was driven by gold-backed ETFs contributing over 1,000 tons of stockpiles till September this year worth $60 billion. In addition, the council highlighted that sales of the yellow metal overtook purchases by leading central banks worldwide, which helped ease the rally.