Gold inches lower on caution over US stimulus bill

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.02% to 1,272.85 tonnes on Monday from 1,272.56 tonnes on Friday.

iStock
U.S. gold futures were down 0.3% at $1,906.50.
Gold prices inched lower early on Tuesday as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus, diminishing the metal's appeal of being a hedge against inflation.

FUNDAMENTALS

Spot gold fell 0.1% to $1,903.16 per ounce by 0055 GMT.


U.S. gold futures were down 0.3% at $1,906.50.

U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about a fresh aid package, Pelosi's spokesman, Drew Hammill, wrote on Twitter.

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, Hammill wrote.
ADVERTISEMENT

The U.S. economy is rebounding strongly after taking a big hit because of the pandemic, but it may be another year before the economy returns to pre-crisis levels and take even longer for the labor market to recoup lost ground, Federal Reserve Vice Chair Richard Clarida said on Monday.

Britain sees no basis to resume trade talks with the European Union unless there is a fundamental change in approach from Brussels, chief negotiator David Frost said, dashing earlier optimism that negotiations could resume.

The European Central Bank will maintain an accommodative policy in response to the ongoing coronavirus crisis, ECB President Christine Lagarde said.

The dollar index was steady against rivals, while Asian stocks came under pressure.
ADVERTISEMENT

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.02% to 1,272.85 tonnes on Monday from 1,272.56 tonnes on Friday.

Silver fell 0.3% to $24.43 per ounce, platinum and palladium were 0.1% higher at $856.85 and $2,345.37, respectively.
ADVERTISEMENT
ADVERTISEMENT
READ MORE

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+