Gold continued to recover Tuesday morning in Asia, as new pandemic-related restrictions took effect around the world and stock markets in the U.S. broke a four-day winning streak.
The prospects are improving for gold to march back towards the $1,900 mark, partly boosted by the increasing likelihood that the U.S. government will reach a budget deal, which would avoid a shutdown, and also issue another round of stimulus worth about $908 billion to shore up a flagging economic rebound from a surging COVID-19 pandemic.
The prospects for more stimulus helped gold gain 3.3% last week, rebounding from a 5% plunge the week before.
Gold continued rising thanks to “some value shopping & hope that stimulus negotiations result in another $1T deal,” said Jeffrey Wright, executive vice president at GoldMining (NYSE:GLDG) Inc. in a tweet.
Also supporting gold prices was a breakdown in talks between the UK and the Eurozone related to Brexit.
In the U.S., stock markets broke a four-day winning streak as new COVID-19 restriction took effect.