Gold steadies as dollar retreats from 2-month peaks, investors await Trump-Biden debate
Gold prices steadied as the dollar retreated from recent peaks, while traders were on sidelines as political uncertainty grew ahead of the first presidential election debate between U.S. President Donald Trump and his Democratic rival Joe Biden this week.
Spot gold was trading flat at $1,861.62 per ounce by 0711 GMT, having hit a low of $1848.84 on Thursday, its lowest since July 22. U.S. gold futures were down 0.1 percent at $1,864.45.
The dollar index declined against its rival currencies, as investors refrained from taking big positions ahead of upcoming economic data and political developments in the United States.
President Donald Trump and rival Joe Biden face off in their first debate ahead of a November election. Many investors view Biden as more likely to raise taxes, and see a second term for Trump, who favors deregulation.
On Friday, the greenback rallied to a 2-month peak on data showing new orders for key U.S.-made capital goods increased more than expected in August and shipments rose to their highest level in nearly six years, suggesting a rebound in business spending on equipment.
Investors risk sentiment was also supported by data released over the weekend showing profits at China’s industrial firms grew for the fourth straight month in August boosted in part by a rebound in commodities prices and equipment manufacturing.
However, resurgence of COVID-19 cases in Europe undermined global economic recovery hopes. COVID-19 cases are edging closer to 33 million around the globe with 992,470 reportedly dead.
Markets now focus on progress on a new fiscal support package in the United States after U.S. House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House on a coronavirus relief package and that talks were continuing. Meanwhile, investors will also closely watch UK-Europe post-Brexit trade talks as they continue this week.
The greenback against a basket of currencies traded 0.05 percent down at 94.54, having touched a high of 94.74 on Friday, its highest since July 24. The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.661 percent and the 30-year yield at 1.405 percent.