Gold near 1-week peak ahead of Trump-Biden debate

Gold prices rose to a 1-week peak as investors cautiously awaited the first U.S. presidential debate and further developments on a new U.S. coronavirus relief bill.

Spot gold was trading 0.2 percent higher at $1,883.73 per ounce by 0936 GMT, having hit a low of $1848.84 on Thursday, its lowest since July 22. On Monday, the safe-haven metal gained 1.1 percent, its biggest one-day gain since late August. U.S. gold futures were up 0.4 percent at $1,889.00.

The dollar index eased to a near 1-week low against its rival currencies, amid political developments in the United States and worries that the economic recovery is stalling as many stimulus programs have expired, curbing consumer spending.

Investors now brace for the first U.S. presidential election debate between President Donald Trump and Democratic nominee Joe Biden, with five weeks to go until the November 3 general election.

U.S. House of Representatives Speaker Nancy Pelosi said on Monday that Democratic lawmakers unveiled $2.2 trillion relief bill. However, it wasn’t specified when there would be a vote on the proposal.

The greenback against a basket of currencies traded 0.2 percent down at 94.08, having touched a low of 94.07 earlier, its lowest since September 23. The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.653 percent and the 30-year yield at 1.408 percent.