Gold Dips Close to One-Month Low – Delay in US Stimulus Weighs

Gold prices continue to trade close to the lowest levels in a month early on Friday, as the US dollar continues to trade strong amid a

Arslan Butt•Friday, October 30, 2020•1 min read

Gold Dips Close to One-Month Low - Delay in US Stimulus Weighs

Gold prices continue to trade close to the lowest levels in a month early on Friday, as the US dollar continues to trade strong amid a likely delay in the announcement of more fiscal stimulus for the US economy. At the time of writing, GOLD is trading at a little above $1,875.

The US dollar has risen close to a one-month high, buoyed by statements that the coronavirus relief package would get delayed until after the presidential election. Gold shares a negative correlation with the dollar, weakening whenever the currency turns bullish as it becomes more expensive for holders of other currencies to purchase the safe haven metal.

Gold also dipped lower after the release of a better than expected GDP reading in the US for the third quarter of the year. The US economy grew by a record 33.1% YoY in Q3, rebounding after the sharp decline in the previous quarter due to the coronavirus pandemic driven shutdowns.

Gold prices enjoy support from the ECB’s comments about unleashing more support for the Eurozone economy in December, amid a resurgence in cases. Markets are expecting the central bank to roll out more bond purchases or offer cheap credit for banks to spur lending.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

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.