Following the gains recorded by the greenback, gold traded lower on Tuesday trading in Asia.
The spot gold price settled lower at $1,919.76 following a 0.1% retreat.
Similarly, US gold futures slashed a more significant piece after tumbling by 0.3%. It currently trades in contango at $1,922.70.
Following the trend, silver fell by 0.8% to $24.90 per ounce.
The dollar gained traction against six other currencies in the basket after J&J reports setback on clinical trials, following an adverse reaction recorded in one of the patients.
The firm decided to put further activities on a halt to address the serious matter at hand.
Although the world’s reserve currency firmed in the latest session, analysts predict that this may likely be short-lived with future events that are all geared towards a bearish retreat.
Among the critical happenings that may change the bullion’s course is the stimulus package believed to be on the right track to approval at a higher bet.
Last week, Trump called to Congress to pass on the stripped-down version of the coronavirus relief legislation.
In current figures, the Democrat representative and former US vice president Joe Biden lead polls against the incumbent leader, Donald Trump, signifying a clear-cut win.
Investors are looking towards what is termed a “blue wave” or a landslide victory by the Democrat party.
Should Biden’s victory materialize in the November elections, the market will likely welcome a higher-in-value stimulus package that could weigh the dollar down and push the gold towards a bullish territory.
Consequently, a delay in the US elections result may also be supportive of spot gold price. The raised uncertainty in the outcome may send investors retreating towards the precious metals, particularly silver and gold.
Meanwhile, along with the latest setbacks, recent gains by tech stocks turned out to be supportive of gold.
The biggest pullers in today’s trading are the recent advance by the Nasdaq juggernauts, notably Apple and Amazon.
The Bezos-owned firm celebrates the anticipated Amazon Prime Day today, sending the stock market to frenzy.
Nevertheless, the continued growth of the number of infected cases in the United States, particularly in the Midwest, capped further the bullion to tumble, keeping it steady in place.
According to a World Gold Council report released in the prior week, gold-backed exchange-traded products remain robust, with holding surpassing the 1,000-tonne threshold for the year in September.
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