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.