Markets Wait on Mnuchin and Pelosi’s Aid Package
APMEX
10/23/2020 8:28:03 AM
Markets Wait on Congress's Plan
U.S. stimulus has been the big story of the week. Gold and other Precious Metals have been moving inversely to inflation, and stimulus would drive inflation up. Nancy Pelosi and Steve Mnuchin have been working together on stimulus for weeks trying to come to a solution. Pelosi set Tuesday as the deadline for having a plan in place, but it’s debatable whether the Democrats and Republicans can find common ground before the election. The White House, the Democrats led by Pelosi and the Republicans led by Senate Majority Leader Mitch McConnell all have different ideas about what an economic stimulus package should look like and how much it should cost.
Gold crossed below the $1,900 per ounce mark this week because of the ongoing concerns about the stimulus and whether it would get done before the election. It popped back up going into Friday on a bout of renewed optimism.
Stocks and commodities have been struggling a bit this week as well, although Friday was a good week for many commodities and markets. OPEC+ met this week and oil went lower after the meeting. The trading bloc reported they had not considered raising production in January, but markets didn’t seem to believe it.
In the corporate world, the U.S. Department of Justice is going after Google for antitrust and some Morgan Stanly executives for compliance. Goldman Sachs had to pay significant fines for some of its Malaysia-based operations. U.S. sanctions on Chinese electronics company Huawei will likely be muted, as they stockpiled chips and other resources essential to their business beforehand.
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