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