Gold Steady Ahead of First US Presidential Debate
Arslan Butt • 1 min read
Gold prices are trading mostly stead early on Tuesday, supported by a weakness in the US dollar as markets turn their attention from pandemic-related developments to the first US presidential debate scheduled for later today. At the time of writing, GOLD is trading at a little above $1,881.
With the US dollar slipping by 0.1% against other major currencies, gold prices, which share a negative correlation with it, received a boost. The dollar is trading cautious in anticipation of the first time President Donald Trump goes up against Democrat candidate Joe Biden in a presidential debate before the upcoming elections in November.
Gold is also supported by progress in the next round of fiscal stimulus measures in the US. On Monday, House Speaker Nancy Pelosi announced that Democrats had agreed on a scaled down $2.2 trillion coronavirus relief package, which could clear and get approved soon.
However, the yellow metal faced some pressure after the EU and Britain look set to make progress towards a free trade agreement. In the final round of negotiations set to start today, the EU looks keen on putting aside differences and working out a joint draft for a trade deal which will come into effect in 2021.