Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Gold extends gains above $1900 amid caution over U.S. coronavirus aid

Gold prices rose, extending previous session gains as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus package and the upcoming presidential election.

Spot gold rose 0.1 percent to $1,907.01 per ounce by 0943 GMT, having hit a low of $1894.60 earlier, its lowest since October 15. U.S. gold futures were down 0.1 percent at $1,909.95.

Broader risk sentiment remained weak ahead of a Tuesday deadline to reach agreement on a U.S. coronavirus aid package as well as the November 3 U.S. presidential election.

U.S. House of Representatives Speaker Nancy Pelosi hopes that by the end of Tuesday there will be clarity on whether a coronavirus stimulus bill can be passed before the Nov. 3 elections, her spokesman Drew Hammill said.

Markets also eye the final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday to see if it shifts the trajectory of the election.

According to a Reuters analysis, COVID-19 cases topped 40 million on Monday. The number of new COVID-19 cases in the United States last week rose 13 percent to more than 393,000, approaching levels last seen during a summer peak.

The dollar index declined against its rival currencies, as investors grew cautious about prospects of a stimulus deal in Washington.

The greenback against a basket of currencies traded 0.2 percent down at 93.23, 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 0.777 percent and the 30-year yield at 1.570 percent.

Markets now await the U.S. Building Permits, Housing Starts and Fed's Quarles speech for further clues on the strength of the economy.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.