Gold’s Safe Haven Dips as Talks on US Fiscal Stimulus Make Progress

Gold prices are on the decline for the second consecutive session on Tuesday amid reports indicating progress in negotiations towards

Arslan Butt•Tuesday, February 2, 2021•1 min read

Gold's Safe Haven Dips as Talks on US Fiscal Stimulus Make Progress

Gold prices are on the decline for the second consecutive session on Tuesday amid reports indicating progress in negotiations towards rolling out the next round of fiscal stimulus measures across the US. At the time of writing, GOLD is trading at a little above $1,856.

During the previous session, President Joe Biden attended a two-hour meeting with Republican senators and on the agenda was the group’s proposal for a smaller stimulus package worth $600 billion. Biden had previously proposed a $1.9 trillion package which was met with opposition from the Republicans.

After the meeting, Biden confirmed that the talks were productive but he insisted that a smaller relief package would not be adequate to offset the damage the pandemic had caused to the US economy. Meanwhile, Democrats have filed the budget measure to get the proposed package approved by the Congress even without the support of Republicans.

Losses in gold, however, remain limited on the hopes that retail demand for the yellow metal could be boosted by India’s decision to cut import duties. India is the world’s second largest consumer of physical gold, and its latest move could potentially spur the demand for the precious metal in the near future.

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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.