U.K. jobless rate rises to 4.8 pct in Q3 2020, labor market likely to deteriorate further in months ahead
Gold prices surge above $1,900 level amid U.S. stimulus package hopes
Gold prices rose above the key $1,900 per ounce level, supported by expectations of a new U.S. stimulus package before Election Day. However, the likelihood of a coronavirus vaccine by the end of this year limited upside.
Spot gold was trading 0.5 percent higher at $1,909.05 per ounce by 0711 GMT, having hit a low of $1822.43 on Wednesday, its lowest since October 8. U.S. gold futures were 0.3 percent up at $1,912.70.
On Sunday, House Speaker Nancy Pelosi said that differences remained with President Donald Trump’s administration on a wide-ranging coronavirus relief package but that she was optimistic legislation could be pushed through before Election Day.
The demand for the safe-haven metal increased after data showed China's economy grew at a slightly slower-than-expected pace in the third quarter. China's recovery accelerated in the third quarter, but overall gross domestic product growth of 4.9 percent, slower than the median forecast of 5.2 percent, highlighting continued challenges faced by the Chinese economy as it emerges from the coronavirus crisis.
Investors are also concerned about rising coronavirus cases. Global COVID-19 cases rose by more than 400,000 for the first time late on Friday, a record one-day increase as much of Europe enacts new restrictions to curb the outbreak.
Drugmaker Pfizer Inc said on Friday it could have a coronavirus vaccine ready in the United States by the end of this year.
Britain and the European Union will attempt to revive post-Brexit trade talks that appeared all but dead last week. UK Prime Minister Boris Johnson told businesses to get ready for a no-deal Brexit in case negotiations with the European Union fail to produce a free trade agreement.
The greenback against a basket of currencies traded flat at 93.68, having touched a high of 93.90 on Thursday, its highest since October 2. The U.S. Treasury yields rose, with the benchmark 10-year note yield trading at 0.772 percent and the 30-year yield at 1.565 percent.