Incentive Package Expectations Increased Gold Prices

Incentive Package Expectations Increased Gold Prices Incentive package expectations increased gold prices. The stimulus package, which came to the agenda one month after the presidential elections in the USA, caused an increase in expectations. With this expectation and the weakening dollar, gold prices are trading at the highest level of the last week. Incentive package talks, which were shelved until the presidential elections, came back to the agenda with 2 new stimulus packages presented yesterday. Gold prices, on the other hand, are trading at the highest level of the last week, with investors turning their attention to the incentive package that came to the agenda a month later and the weakening dollar. Chuck Schumer, Leader of Senate Democrats and Spokesperson of Representatives Nancy Pelosi announced their support for the $ 908 billion stimulus package on Wednesday. With these statements, US assets set a new record on Wednesday. Treasury bonds increased slightly, while the dollar is trading at its lowest level since April 2018. Britain took action before the USA and the EU and became the first western country to approve the coronavirus vaccine. Gold prices are still preparing to close 2020 as the most lucrative year of the last decade, despite a sharp decline in the past month, with the news flow for the vaccine developed against the coronavirus. According to data from Bloomberg, the increase in risk appetite carried the exit of gold-based exchange traded funds to its eighth day. Craig Erlam, Senior Market Analyst at Oanda Corp, said the following about gold, which was on the rise with news about the incentive package: “Any hint of the fiscal stimulus package creates support for gold and all speculation is driving prices up. There is still a big barrier at the $ 1,850 level, although difficulties remain in the short term, breaking these levels can cause serious moves.” Spot gold gains 0.26 percent at 08:04 am, and traded at $ 1,836.00 per ounce. Silver fell 0.2 percent, while the Bloomberg Dollar Spot Index fell 0.1 percent.