Gold prices soared in the Asian session after US President Donald Trump signed a $ 900 billion coronavirus stimulus bill and $ 1.4 trillion in government funds.
The precious metal managed to reach the resistance level of $ 1,900 per ounce, before returning to profit by trading strong around the price level of $ 1,894 per ounce, while gold futures were positive at $ 1,899 per ounce (11.45am Malaysian time).
Trump, who initially refused to sign the U.S. coronavirus stimulus package and urged Congress to amend it last week, suddenly changed his mind by signing it today.
This has led to the decline of the greenback dollar against a basket of major currencies with weak trading around the 2 and a half year low of 90.10.
Gold is now poised for its highest closing in seven weeks, and recorded its first monthly increase since July following losses due to the development of a positive coronavirus vaccine.
Nevertheless, investors need to be cautious ahead of the year-end holiday season which could affect the momentum of gold and market price movements.
