Gold Dips as Dollar Strengthens – Rise in Cases Limits Losses
Arslan Butt • 1 min read
Early on Monday, gold prices have weakened to the lowest levels in over a week as a result of renewed strength in the US dollar and a lack of clarity on when the next round of fiscal stimulus measures will be rolled out in the US. At the time of writing, GOLD is trading at a little above $1,895.
Over the weekend, House Speaker Nancy Pelosi confirmed that the latest coronavirus relief package was under review by the Trump administration and hoped for the deal to be finalized soon. However, markets remain unconvinced that the next round of financial aid would be announced ahead of the November 3 elections.
Gold, however, enjoys support over the record spike in the number of fresh coronavirus cases across parts of the US and Europe. The US has seen an increase in the number of hospitalizations and even deaths due to the coronavirus.
Premiums for the yellow metal rose close to a three-month high across India – the world’s second largest consumer of physical gold. With the festive season coming up in the country, traders expect the demand for the precious metal to see an uptick, despite the higher prices.