The latest big news in the US COVID-19 rescue bill came in early Asian trading on Monday: US President Donald Trump has signed a bailout bill that will avert a shutdown of the federal government. As a result, spot gold has surged in the short term, breaking through $1,895 an ounce and now approaching the $1,900 mark.
US President Donald Trump has signed the COVID-19 relief bill into law, according to the latest news from AP on December 28. Reports say President Trump has signed into law a $900 billion pandemic plan to provide long-sought funding to businesses and individuals.
CNBC also released the latest news that US President Donald Trump has signed into law the New Coronado bailout bill and the federal government’s comprehensive spending bill.
Spot gold rallied on the news, with prices as high as $1, 896.60 an ounce.
Mr Trump signed into law a comprehensive COVID-19 rescue bill, according to people familiar with the matter, ending the impasse with Congress and paving the way for millions of Americans to receive financial assistance as COVID-19 sweeps the country.
According to AFP, a White House spokesman confirmed that US President Donald Trump has signed the COVID-19 relief Bill. The COVID-19 relief bill includes more than $900 billion for individuals and small businesses. Trump vetoed the comprehensive package on Monday and asked Congress to revise unnecessary components of the NOVEL Coronavirus Bailout bill, saying too much money had been allocated to foreign aid and domestic projects unrelated to the novel Coronavirus pandemic.
According to the Website AXIOS, Republicans familiar with the matter said Trump had signaled he would sign the stimulus bill to extend unemployment benefits and avoid a government shutdown.
Mr. Trump tweeted late on December 27th that “good news” was coming about the $900bn packages he had refused to sign. “Good news for the COVID-19 bailout,” Mr. Trump wrote on Twitter. There will be more information.”
Over the weekend, US politicians were urging Mr Trump to sign the $900bn new Champions bailout bill, according to US media. Mr Biden said on December 26 it would be “devastating” if Mr Trump continued to delay signing the COVID-19 bill.
Late on The night of December 21 local time, both houses of the US Congress passed a spending package totaling about $2.3 trillion to combat the COVID-19 epidemic. It is one of the largest bills ever passed by the U.S. Congress, including an estimated $900 billion epidemic economic rescue bill and a $1.4 trillion budget bill for fiscal year 2021.
However, Mr Trump on December 22 threatened that he might not sign the new $900bn rescue bill passed by the US Congress. Mr Trump said he would ask Congress to “fix” the bill, increase the size of stimulus checks and eliminate wasteful spending.
Mr Trump has said he will ask Congress to amend the newly passed $900bn New Champions Bailout bill, saying it contains too much foreign aid and not enough for struggling Americans. Mr Trump has asked members of Congress to increase the amount of stimulus checks that most Americans can receive from an “absurdly low” $600 to $2,000, or $4,000 for couples. Negative developments in the US fiscal stimulus package put some downward pressure on gold prices, which briefly approached the $1,850 an ounce level last week.
Democrats moved to increase stimulus checks after Trump threatened to oppose $2 trillion in anti-epidemic aid and federal funding bills. House Speaker Nancy Pelosi came out in support of Mr. Trump’s proposal and called on Democratic lawmakers to support it. Democrats in the House of Representatives tried to pass a new bill at a formal meeting on December 24th that would have raised the $600 per person to $2,000, but the bill was blocked by Republicans.
Despite last week’s setbacks, some market participants had long expected the stimulus bill to eventually become law.
“Investors are quite optimistic about fiscal and monetary support from governments around the world,” UBS analyst Giovanni Staunovo said last week. Gold, considered a hedge against inflation and currency depreciation, is up more than 23% this year, helped by massive stimulus measures.
“Our base case is still that what congress passes will become law,” said Ed Mills, an analyst at Raymond James.
Jigar Trivedi, the commodities analyst at Anand Rathi Shares, a Mumbai broker, said: “The market is hoping that the stimulus package will be passed and that should support gold higher.”