Early on Tuesday, gold prices are trading somewhat bearish as markets await cautiously for updates on the coronavirus relief package before the US presidential elections. At the time of writing, GOLD is trading at a little above $1,900.

According to House Speaker Nancy Pelosi’s spokesman, discussions between the Democrats and the Trump administration on the next round of fiscal stimulus are making progress. According to Pelosi, there could be some confirmation by the end of Tuesday on whether the bill can be passed before the upcoming elections.

Gold is expected to turn bullish when the US announces its next round of fiscal stimulus measures to support its economy. Not only does more financial aid boost the safe haven appeal, but it also weakens the US dollar, lending an additional boost to the yellow metal.

Gold enjoyed some support, however, on Monday after Fed Vice Chair Richard Clarida stated that although the US economy had started rebounding, it could take up to a year to return to pre-pandemic levels of growth. Clarida also cautioned that the US labor market could take longer to recover from the impact of the coronavirus pandemic.