There were three events that gave profound impact to US stocks, gold, silver and the US dollar last week.
First is the emergence of Pfizer's COVID-19 vaccine, which gave investors optimism that soon, the world will finally escape the clutches of the coronavirus.
The second was the news that the bipartisan group that proposed revising the $ 908 billion bailout package split the package into two separate bills.
The first bill allocates about $ 748 billion, and covered the areas that both the House of Representatives and the Senate agreed on, thereby making this smaller bill more acceptable to both Democrats and Republicans. This means that the Congress may adopt this package at the end of this year.
The second bill, which provides $ 160 billion in bailout, responds to the two major issues that were the cause of deadlock in the earlier negotiations. These were the funds for state and municipal assistance and the liability insurance of enterprises.
Meanwhile, the last event was the FOMC meeting, during which the Fed decided to stick to its current monetary policy. Interest rates will remain near zero, at least until early 2023. This decision led to the sharp decline of the US dollar last week.
Together, these three events provided strong support to gold and silver, and pushed them to higher price levels.
But this week, their quotes may turn down, especially if the US does not adopt a new stimulus package.
If a bill is not signed, millions of Americans will suffer, since the program of unemployment benefits will expire the day after Christmas, and the deadline of the eviction moratorium is on December 31.
