One percent jump in gold prices following congressional agreement on US $ 900 billion package

Gold prices jumped up 1 percent today to a one-and-a-half-month high as news broke of a congressional deal on a $ 900 billion stimulus package in the United States, Reuters reported. .

Gold rose 0.77 percent to $ 1,895.89 an ounce today, according to the report. The yellow metal rose as high as $ 1,899.29 earlier today, the highest level since Nov. 9. Gold futures for February delivery rose 0.75 percent to $ 1,903.10 an ounce in February.

Republican and Democratic leaders in Congress yesterday finally reached an agreement on a $ 900 billion stimulus package against Corona after weeks of negotiations, and a vote is expected to take place today.

“Now that the new stimulus package is being finalized, the price of gold is on track to cross the $ 1,900 mark before the end of the year and may even rise to $ 1,925,” said Stephen Inz, an analyst at the OxyTrader Institute. “Go.”

“If you put the new stimulus package alongside optimism about the continuation of the Federal Reserve’s expansion plan, we can expect the price of gold to rise at least until March 2021,” he added.

The Federal Reserve promised last week that it would continue to inject liquidity into financial markets until the US economy recovers. Gold prices have risen while the dollar has risen.

“The escalation of the corona epidemic is hampering the growth of the global economy, and this has prompted the world’s central banks to continue their expansionary monetary policy, which will continue to drive up the price of gold,” said Avatar Sando, a gold market analyst.

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