Gold Steady Under $1,900 as US Dollar Firms on Possible Delay in Stimulus

Gold prices are holding steady under the key $1,900 level as uncertainty about the next round of fiscal stimulus in the US continues to

Arslan Butt•Wednesday, October 14, 2020•1 min read

Gold Steady Under $1,900 as US Dollar Firms on Possible Delay in Stimulus

Gold prices are holding steady under the key $1,900 level as uncertainty about the next round of fiscal stimulus in the US continues to support the US dollar. At the time of writing, GOLD is trading at a little above $1,897.

In the previous session, the yellow metal lost around 1.6% of its value as more reports pointed to the stimulus package being delayed until after the presidential elections on November 3. House Speaker Nancy Pelosi rejected President Trump’s proposal for a $1.8 trillion coronavirus relief package, maintaining that more money is needed to offset the economic damage caused by the pandemic.

Gold prices also came under pressure after finance leaders from around the world stated that the global economy had not yet collapsed due to the pandemic, as a result of the stimulus measures implemented by governments and central banks so far. In addition, US CPI rose for the fourth consecutive month during September, further weighing on the safe haven appeal of the yellow metal.

However, gold did receive some support from a deterioration in the risk appetite in global markets after Johnson & Johnson and Eli Lilly paused their clinical trials for a COVID-19 vaccine. This news served to discourage traders that the pandemic could be resolved soon, raising worries that the economic downturn globally could last longer.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.