Gold Prices Ease As Dollar Firms
Gold prices eased on Wednesday and the dollar firmed up as markets turned risk-averse in light of U.S. election uncertainty and a resurgence of Covid-19 infections in the U.S. and Europe.
Spot gold dropped half a percent to $1,898.06 per ounce, while U.S. gold futures were down 0.7 percent at $1,898.65.
A wave of risk aversion swept global markets amid stalled stimulus talks in the U.S., surging global Covid-19 cases and uncertainty surrounding the U.S. presidential election outcome.
Hopes of U.S. stimulus faded after U.S. President Donald Trump admitted that talks have collapsed for a coronavirus stimulus package before Election Day.
“After the election, we will get the best stimulus package you have ever seen,” Trump told reporters at the White House.
Surging Covid-19 cases in the U.S. and Europe raised worries of a deepening economic slowdown.
The United States is logging more coronavirus infections than ever before, with 29 states reporting record numbers of infections over the past week.
The situation in Europe is “serious and alarming” and the bloc must be more efficient with testing, contact tracing, vaccine and quarantine policies, the EU Council President, Charles Michel, told Italian daily La Stampa in an interview published today.
Investors also grappled with uncertainty over the impending U.S. presidential election after recent polls showed former Vice President Joe Biden with a narrow lead over President Trump.