Following the successful agreement of the second long-sought coronavirus aid package by Congress, gold prices rose to their highest level in nearly six weeks as investor appetite for the precious metal took a boost. ,
Gold prices rallied to over $1,882 per ounce come Mondaythe highest level since November 13, as Congress finally came to an agreement on the second largest stimulus package in US history. The $900 billion stimulus package will provide aid to businesses and Americans that have have been left devastated by the pandemic, as well as help fund the delivery of vaccines. However, another reason for the recent price growth is due to renewed lockdowns across the UK and Europe.
According to CMC Markets chief strategist Michael McCarthy, the new lockdowns being reimposed across Europe in response to the infectious strain spreading in the UK has caused gold to regain its safe haven status. The recent lockdowns have caused attitudes to shift in the broader market, many of which overlooked the pandemic and instead were directed towards the recovery period next year.
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Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
