Gold Gains as Coronavirus Relief Package Ready For Vote
Arslan Butt • 1 min read
At the start of a fresh trading week, gold prices are on the rise as discussions on the coronavirus relief package among Congressional lawmakers makes progress and possibly voting on it later today. At the time of writing, GOLD is trading at a little above $1,901.
On Sunday, the US Congress arrived at a deal on the next round of fiscal stimulus measures worth $900 billion, which could offset some of the damage caused to the US economy by the coronavirus pandemic. Lawmakers from both parties announced their decision to come to an agreement on the bill and are expected to vote on it and pass it on Monday.
In addition to rising expectations for more stimulus supporting gold prices, the precious metal has also been gaining amid reports of more restrictions across the UK and parts of Europe. The UK government announced tighter lockdowns after discovering a new, more rapidly spreading strain of coronavirus, which has also prompted other European nations to ban travel from the UK as a result.
Gold also remains in favor as Brexit negotiations between Britain and the EU fail to make progress towards a trade deal. Despite only a few days remaining until the end of the transition period, a UK government source stated, “Talks remain difficult and significant differences remain. We continue to explore every route to a deal that is in line with the fundamental principles we brought into the negotiations.”