Breaking: Gold drops $20, T-yields spike as Biden set to announce $2 trillion stimulus
|President-elect Joe Biden is expected to unveil a major Covid-19 relief package worth roughly around $2 trillion on Friday, CNN reports, citing two people briefed on the deliberations.
His advisers have recently told allies in Congress to expect a price tag in the ballpark of $2 trillion, up $700bn from the $1.3 trillion package Schumer asked for in late Wednesday's NY trading.
Additional takeaways
“The Biden team is taking a "shoot for the moon" approach with this package.”
“The proposal will include sizable direct payments to American families, significant state and local funding -- including for coronavirus vaccine distribution and other emergency spending measures -- to help those struggling during the pandemic.”
“Brian Deese, Biden's pick to lead the National Economic Council, said Wednesday at a conference that the package will include $2,000 stimulus checks, and address other relief measures like unemployment insurance.”
Market reaction
On the above report, Gold saw a quick drop of about $20 to near $1832 levels, as the sell-off in the US Treasuries fuelled a 2% jump in the 10-year Treasury yields, prompting a fresh bounce in the US dollar index.
Gold Price Chart: 15-minutes
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.