At the start of a brand new trading week, gold prices are trading strong just above the key $1,900 level as traders await confirmation of the coronavirus relief package before the presidential elections. At the time of writing, GOLD is trading at a little above $1,908.

On Sunday, House Speaker Nancy Pelosi expressed optimism that the next round of fiscal stimulus could be finalized ahead of the November 3 elections, even though differences were still being discussed with the Trump administration. The announcement of the fiscal stimulus will boost the safe haven appeal of gold and turn it bullish.

Gold traders are also cautiously awaiting developments on the Brexit front before making a move, with Britain and the EU set to continue their discussions later today. Last week’s talks failed to make progress with both sides blaming the other and telling each other to change course.

In the coming week, the demand for physical gold is likely to go up in India – the world’s second largest consumer, with the festive season approaching. Meanwhile, the demand for the precious metal remained subdued in China during the Golden Week.