Gold Prices Rise On Stimulus Bets

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Gold prices rose on Monday and the dollar index eased as investors watched the latest developments related to Brexit talks, U.S. stimulus negotiations and the coronavirus pandemic.

Spot gold rose 0.7 percent to $1,913.51 per ounce, while U.S. gold futures were up 0.6 percent at $1,916.90.

The British pound rose versus the euro on hopes the deadlock in Brexit talks can be broken. Last week, trade talks hit an impasse over the issues including fishing access and state aid rules.

On the U.S. stimulus front, House Speaker Nancy Pelosi said on Sunday differences remain with President Donald Trump’s administration on a wide-ranging coronavirus relief package but she was optimistic legislation could be pushed before the Nov.3 election.

President Trump said Sunday he would be open to a stimulus package bigger than the $2.2 trillion proposed by Democrats.

“I want at a bigger number” than Pelosi. “That doesn’t mean all the Republicans agree with me but I think they will in the end,” Trump said.

Meanwhile, amid rising coronavirus infections and fresh government restrictions, economists warn that Europe’s economy is sliding towards a double-dip recession.

Italy announced new measures after the country recorded a record daily increase of the Covid-19 cases for the fifth day in a row on October 18.

Elsewhere, Britain’s government scientific adviser Jeremy Farrar said the country needs to impose a three-week period of national lockdown restrictions to prevent the continued spread of the virus.

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