Stock market indices were on the back foot after an open dispute between the Federal Reserve and Treasury Secretary Steven Mnuchin regarding coronavirus emergency funds emerged overnight. Gold was a beneficiary from the 'risk-off' sentiment.
In a letter to the Federal Reserve Chairman Jerome Powell, Mnuchin requested the return of $445 billion in unused funds that is part of the federal bailout bill which was agreed to help counter the economic impact of the coronavirus pandemic.
The Washington Post reported on the Fed's response, which was highly unusual for the central bank. In their response, the Fed issued a statement that they would "prefer that the full suite of emergency funds established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy."
The dispute comes at a time where jobless claims have been rising and Mnuchin's boss, President Donald Trump, continues to claim voter fraud. Suddenly, the safe haven of Gold has become more attractive to many investors.
Did you know that you can speculate on the direction of Gold using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
How to trade Gold with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of Gold you can speculate on the direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in Gold and choose your instrument at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, #GOLD, Weekly - Data range: Jun 8, 2014, to Nov 20, 2020, performed on Nov 20, 2020, at 9:07 am GMT. Please note: Past performance is not a reliable indicator of future results.
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