Gold Holds Steady Amid Stimulus Hopes
Gold prices held steady on Tuesday as investors became more confident of a larger stimulus deal in the U.S. down the road.
U.S.-China tensions and renewed concerns about the potential economic and health impacts of the coronavirus on the global economy also offered some support.
Spot gold held steady at $1,921.74 per ounce, while U.S. gold futures were down 0.1 percent at $1,926.65.
After the revival of stalled talks, investors remain hopeful that a second U.S. stimulus package would eventually be passed.
White House Press Secretary Kayleigh McEnany said on Monday she believes U.S. Senate Republicans will eventually get on board with what President Trump wants in coronavirus relief legislation.
U.S.-China tensions remain on investors’ radar amid reports that the Trump administration plans to sell three advanced weapons systems to Taiwan, which is seen by China as a breakaway province.
On the Covid-19 front, Johnson & Johnson said it had temporarily halted its Covid-19 vaccine trial due to an unexplained illness in a participant, raising uncertainty about the timing and effectiveness of a vaccine.
There is some cheer on the data front, with China’s exports rising 9.9 percent to $239.7 billion in September, marking a fourth straight monthly gain. Imports rose by 13.2 percent to $202.7 billion after weakening in the previous two months.