Gold Futures Settle Higher For 3rd Straight Day

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Gold prices moved higher on Wednesday and the front-month gold futures contract extended its gains to a third successive day, as the dollar continued to exhibit weakness.

Reports showing continued surge in coronavirus cases across the world contributed as well to gold’s uptick.

Dollar’s weakness was due to continued optimism about a U.S. fiscal stimulus. Despite the ongoing impasse over stimulus talks, it is widely expected that the lawmakers will eventually arrive at a compromise by the end of this week.

The dollar index dropped to a low of 92.47 around late morning, and despite edging up a bit subsequently to 92.56, was still notably lower, netting a loss of over 0.5% from previous close.

Gold futures for December ended up $14.10 or about 0.7% at $1,929.50 an ounce.

Silver futures for December moved up $0.261 to settle at $25.241 an ounce, while Copper futures for December settled at $3.1985 per pound, up $0.0505 from previous close.

On the stimulus front, House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin are expected to talk again today as they seek to reach an agreement on a new relief package before next month’s elections.

In a post on Twitter, Pelosi’s deputy chief of staff Drew Hammill said the Speaker and the Secretary have called for committee chairs to work to resolve differences about funding levels and language.

The material has been provided by InstaForex Company – www.instaforex.com

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