Progress in US Stimulus Bill Weighs Gold Lower

Progress in US Stimulus Bill Weighs Gold Lower

Gold edged down lower as US Speaker Nancy Pelosi imposed a 48-hour deadline to level with US Treasury Secretary Steven Mnuchin over the second stimulus package.

The announcement ignited hopes among investors, with prospects that the economic cushion may enter into force before the November 3 elections.

The news stimulated the risk appetite among investors, sending the greenback to steady. 

Surprisingly, it failed to highlight the yellow metal appeal as a hedge against inflation being a non-yielding asset.

Spot gold price fell by 0.3% to $1,899.17 per ounce. Gold futures settled in contango at $1,904.15 after notching a 0.39% fall.

On the other hand, silver opened the week with a bullish performance following its surge above the 50-day exponential moving average. It settled above its technical resistance at $27 per ounce.

Yesterday, silver for December delivery added a significant 1.2% to $24.698 per ounce. Following a sharp drop of 2.4% recorded last week.

The Federal Reserve urged the two parties to narrow differences by highlighting the monetary cushion’s imperative role in the bleeding US economy.

In the past months, the world’s number one economy has been recording an impressive rebound. However, analysts noted that it would take quite a while for figures to go back to pre-pandemic levels.

Last week, the country recorded a sharp increase in initial job claimants, signifying that its labor market is still battling a treacherous against the Covid 19.

Aside from the hopes for stimulus bonanza, Brexit is still dimmed by the higher chance of ending with no-deal following adamant stance by either party in the account of fair competition rules, sovereignty, and fisheries.

How Other Precious Metals Performed

Other precious metals are trading flat. Palladium is a little changed for today’s session, while platinum fell along with the bullion. The COMEX-listed platinum futures fell by 0.7% to $863.50 per pound.

On the other hand, December copper edged higher after notching a 0.6% increase, settling at $3.086 per pound. 

It even recorded over 1% increase at one point in the trading session. Driving gains to $3.1080 per pound or $6,850 per tonne.

Around 1.2 billion pounds of the metal was in trading during the brisk session. This makes copper the most active contract sold in New York’s early afternoon operation.

The copper price is eyed for a two-year high as China reports a significant GDP growth for the July to September quarter at a 4.9% increase.

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