Gold prices edged higher on Wednesday, bolstered by a weaker dollar, while investors kept hopes pinned on a US stimulus package, even after President Donald Trump threatened to not sign the relief bill.

Spot gold was up 0.7% at $1,872.67 per ounce by 12:55 p.m. EST, having risen as much as 1% earlier in the day. Meanwhile, US gold futures rose 0.4% to $1,877.50 per ounce in New York.=

“The economic data just cements the belief that the economy is slowing down and that should help the negotiations with stimulus … it’s going to be extremely likely that some type of stimulus deal will still get done,” Edward Moya, senior market analyst at OANDA, told Reuters.

“The slightly weaker dollar has provided a move higher for gold,” Moya continued, adding the stimulus deal and positive developments on the Brexit front are needed to further cement gold’s bullish case. 

Raising gold’s allure for holders of other currencies, the dollar index dropped 0.5%, as investors expect further declines in 2021.

Earlier, President Trump threatened to not sign the $892 billion coronavirus relief bill, seen as a lifeline for the nation’s pandemic-battered economy, saying the amount in the stimulus checks should be increased.

“Even if Donald Trump declines to sign the bill, it is widely expected that Biden will make it pass and therefore we do not see any downside to gold at the moment,” Natixis analyst Bernard Dahdah said.

The number of Americans filing first-time claims for unemployment benefits remained elevated, but posted an unexpected fall last week. 

Bullion, considered a hedge against inflation and currency debasement, has risen more than 23% this year, benefiting from massive stimulus unleashed globally.

New record highs for the silver market would be a breach of the $50 an ounce level. A move like that would double silver’s current trading levels. At the time of writing, March Comex silver was trading at $25.37, down 3.83% on the day.

Bloomberg Intelligence compares silver’s price potential to that of 2008, which saw the start of a rally that took the metal to nearly $50.

“Annual technical indicators for silver are akin to those during turns higher at the start of the new millennium and following 2008. We see the metal following a similar trajectory as the aftermath of the financial crisis toward $50 an ounce, but with greater potential for staying power on a path paved by gold,” McGlone said.

This year’s breach of the $20 resistance level was very significant for the metal and will help silver move higher next year.

“There’s a good chance that the 2020 low at about $12 will be as enduring as about $8.50 from 2008, which hasn’t traded since,” McGlone pointed out. “The 2008 launchpad peaked in 2011 with silver matching the 1980 high at about $50. Underpinnings are firmer this time, as evidenced by the five-year moving average recently turning upward. A risk-off event like 1Q should find good silver support at around $20.”

This year’s price action was especially volatile amid all the coronavirus disruptions, with silver first falling below $12 and then surging to a seven-year high of nearly $30.

“Our take is bull markets are supposed to get overextended and this one may be just beginning. The market has turned upward following an extended period of subdued prices and may just need some back-and-fill before resuming the rally,” McGlone wrote. “Technicals point to responsive buyers as more likely to prevail on dips than sellers on rallies.”