At the start of a new week, gold prices are on the rise, supported by news about US President Donald Trump signing the coronavirus relief package and releasing more fiscal stimulus for the economy. At the time of writing, GOLD is trading at a little above $1,888.

Over the weekend, months of uncertainty and worries finally came to a conclusion after Trump signed the coronavirus relief bill into law, and approving the rollout of $2.3 trillion worth of stimulus measures. After his threat to not sign the bill, Trump’s decision not only helps roll out more financial aid to Americans and businesses but also helps avoid a partial government shutdown which could have further hurt the fragile American economy.

So far this year, gold prices have increased by around 24% in the wake of the coronavirus pandemic and worries about its impact on the global economy. Most countries around the world are suffering from an economic downturn as the pandemic rages on and forces governments to impose lockdowns and restrictions that have hurt economic activity and increased unemployment levels.

The safe haven metal gold also enjoys support from a weakness in the US dollar as a result of the signing of the Brexit deal last week as well as the latest round of fiscal stimulus which will be rolled out soon across the US. As we know, gold shares a negative correlation with the dollar, so a weakness in the greenback makes the yellow metal more affordable for holders of other currencies.

Gains in the yellow metal, however, remain limited as markets remain optimistic about the signing of the Brexit deal and as Britain begins preparations to move out of the EU more than four years after the vote. In addition, the rollout of the COVID-19 vaccine across Europe is also exerting some downward pressure on the safe haven metal for now.