Gold Higher After A Dispute Between Treasury Secretary And Fed

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Nov 20, 2020 at 5:03 AM EST

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.

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.

Gold higher after a dispute between Treasury Secretary and Fed

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.

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