In a statement on Tuesday, Biden said the $900 billion stimulus plan “provides critical temporary support” but “is just the beginning.”
Gold futures are trading slightly lower on Wednesday in a mixed up session that saw the precious metal edge higher in the overnight trade on comments from President Trump only to fall back later despite a weaker U.S. Dollar. The price action reflects thin pre-holiday volume and the absence of the absence of the major players to drive the market in one particular direction.

At 12:56 GMT, February Comex gold is trading $1864.90, down $5.40 or -0.29%.
Whipsaw Price Action This Week
Gold prices fell on Tuesday as the dollar benefited from safe-haven buying driven by fears over a new coronavirus variant in the United Kingdom. The firm greenback made gold more expensive for holders of other currencies, weakening demand.

Meanwhile, data on Tuesday showed the U.S. economy grew at a record pace in the third quarter, but consumer confidence and existing home sales fell, indicating an unstable economic recovery.

On Monday, gold hit a six-week high mainly supported by the U.S. Congress’s approval of an $892 billion coronavirus aid package to support the economy. Since the news had been telegraphed for weeks, investors decided to book profits and prices started to retreat.
Gold Inched Higher Earlier on Hopes of Further US Stimulus
Following the passing of the bill to provide more fiscal stimulus to Americans gold prices firmed on comments from President-elect Joe Biden that called for an even bigger stimulus package once he takes office on January 20, 2021.

In a statement on Tuesday, Biden said the $900 billion plan “provides critical temporary support” but “is just the beginning.”

“Immediately, starting in the new year, Congress will need to get to work on support for our COVID-19 plan, for support to struggling families, and investments in jobs and economic recovery,” he said. “There will be no time to waste.”

President Trump Causes Volatility Bump Overnight
Late Tuesday, President Trump expressed concerns about the new COVID-19 relief package which could delay the deployment of funds to struggling Americans. His comments caused a jump in gold prices early in the session.

Trump called the new $900 billion COVID relief bill an unsuitable “disgrace” and admonished lawmakers to alter the bill’s contents, especially the amount allocated for direct payments to Americans. Trump did not threaten to veto legislation but he asked to be sent a “suitable bill or else the next administration will have to deliver a COVID relief package.”

“I am asking Congress to amend this bill and increase the ridiculously low $600 to $2000, or $4,000 for a couple,” Trump said in a video posted to Twitter Tuesday night.

Daily Forecast
Gold prices are retreating on Wednesday after Trump’s comments caused a slight jump in prices because traders realized the legislation passed by both houses of Congress with veto-proof majorities have rendered Trump powerless to make any changes to the stimulus bill.

Nonetheless, additional stimulus is likely coming early next year from the Biden administration, which should provide a short-term boost for prices once the lawmakers start to debate the matter and investors get an idea of the size of the package that Biden is proposing.

On Monday, House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., called the current plan a “package that delivers urgently needed funds to save lives and livelihoods of the American people as the virus accelerates.” They also called the plan inadequate and noted they would push for more relief spending after President-elect Joe Biden takes office on January 20.

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