Investing

Gold Up as Investors Wait on U.S. Stimulus Package By Investing.com

© Reuters.

By Sergio Held

Investing.com – After a week trending downwards, gold was up Friday morning in Asia as investors waited for news from the U.S. on a $1.9 trillion stimulus package proposed by President Joe Biden.

were up by 0.15% at $1,844.00 by 09:53 PM ET (02:53 AM GMT).

The moves in gold followed news overnight that U.S. GDP contracted 3.5% for all of 2020, the worst contraction since 1946, after the Second World War.

Despite and the impact of the pandemic across the globe, demand for gold fell to its lowest since 2009, according to the World Gold Council.

“The coronavirus pandemic, with its far-reaching effects, was the driving factor behind weakness in consumer demand throughout 2020, culminating in a 14% decline in annual demand to 3,759.6t, the first sub-4,000t year since 2009,” the London-based organization said.

The U.S. rescue package could put pressure on gold prices even by helping shore up economic growth.

“Without swift action, we risk a continued economic crisis that will make it harder for Americans to return to work and get back on their feet,” said Brian Deese, economic advisor to the White House, on Thursday. 

Gold Investors will be on the lookout for clues on the movement of the package and other economic measures to curb the impact of COVID-19.

The International Monetary Fund (IMF) said on Thursday that fiscal spending was needed to limit the economic impact of the pandemic.

“Because of this crisis, fiscal spending was needed. That increase in fiscal spending alongside the output collapse has raised debt levels to record highs in many countries,” said Gita Gopinath, economic counselor, and director of the research department at IMF. “The fact that we have low interest rates and because we have growth now coming back in 2021, that should help stabilize debt levels in many countries. But it is very important for all countries to have medium-term fiscal frameworks that ensure that debt remains sustainable.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button