The price of gold continues its victorious march up on Monday morning. This was due to the news from the United States of America. According to the latest data, a new program to stimulate the country's economy against the background of the consequences of the crisis caused by the coronavirus pandemic will still be adopted before the new year. At the very least, Congress has decided to make concessions to the still-acting US President Donald Trump and discuss increasing the amount of payments to the civilian population.
The price of gold futures contracts for February delivery on the electronic trading platform in New York climbed 0.83% or $15.6, which allowed the price to move to a new level of $1,898.8 per troy ounce.
The price of silver futures contracts for delivery in March is also growing rapidly. In the morning, they became more expensive by 3.47%, which allowed a rise to $26,808 per troy ounce.
The signing of the US budget for the fiscal year 2021 had a very positive effect on the precious metals market. It also takes into account measures to support the state economy amounting to $900 billion. Recall that earlier there were insurmountable differences between the leader of the country and the authorities over the amount of payments to the civilian population. Trump announced that he would never put his resolution on the document until the amount of the benefit is increased. However, now it becomes clear that the parties are ready to move closer: the House of representatives promised to revise the previously designated amount of payments for 1 person from $600 to $2,000. A corresponding votation should be held on Monday, where the amended bill will be presented.
Many experts say that we should not expect a positive decision of Congress on the expansion of financial assistance. However, the very fact that the budget has been signed and the matter has finally moved forward inspires hope and forces precious metals to actively increase their value.
In addition, the fact that the US dollar is rapidly losing its position signals that gold will continue its victorious march. The dollar exchange rate is falling, which in turn has a positive impact on the precious metals market. Recall that the traditionally weakening dollar becomes a good support for quotes of precious metals since it is in this case that gold becomes cheaper for holders of foreign currency.
Thus, in the short and medium term, the precious metals market will feel more than confident.