Gold Steady, Traders Await US Presidential Debate, Fiscal Stimulus
Arslan Butt • 1 min read
Early on Monday, gold prices are trading somewhat steady after the US dollar’s rally came to a halt and traders wait for the first US presidential debate later this week. At the time of writing, GOLD is trading at a little above $1,863.
Traders also await details on the next round of fiscal stimulus measures in the US after House of Representatives’ Speaker Nancy Pelosi commented over the weekend that Democrats and Republicans could soon reach a deal on the coronavirus relief package. Increasing stimulus efforts boosts the safe haven appeal of gold and sends its price higher.
On the one hand, gold enjoys support from the rising number of coronavirus cases globally over fears of additional lockdowns which could delay economic recovery. On the other hand, however, the demand for physical gold in India – one of the world’s largest consumers of the yellow metal, remains weak due to the surge in prices, and even discounts by dealers are unable to attract consumers.
Gold also came under pressure after the release of core durable goods orders data from the US late last week. New orders for capital goods made in the US saw a larger than expected increase during August even as shipments soared to a near six-year high for the month, sending positive signals about the improvement in economic activity in the US.