Gold Holds Steady On Covid-19 Worries, Stimulus Hopes
Gold prices were flat to slightly higher on Tuesday as mounting Covid-19 cases and new lockdown restrictions in many countries boosted hopes for a U.S. pandemic stimulus.
Spot gold edged up 0.1 percent to $1,864.22 per ounce, while U.S. gold futures were up 0.2 percent at $1,868.80.
The U.S. Congress is expected to vote this week on a one-week stopgap funding bill to give negotiators more time to strike a compromise.
U.S. Senate Democratic leader Chuck Schumer said there were signs of progress in talks on a bipartisan bill.
The European Central Bank holds its latest policy-setting meeting on Thursday after flagging more emergency bond buying and cheap liquidity for banks.
Elsewhere in Japan, the country’s Cabinet approved today an additional economic package worth 73.6 trillion yen ($707 billion) including private funds to help ease the impact of the coronavirus pandemic.
A sharp rise in coronavirus cases has led to a string of renewed lockdowns in many countries, threatening a global economic recovery.
The governors of New York and California have warned of a crisis that is filling up hospitals.
Germany is looking to impose tougher restrictions on movement after a nationwide partial shutdown made little impact on the spread of the disease.
France may have to delay unwinding some Covid lockdown restrictions next week amid signs the country will miss a coronavirus goal set by President Emmanuel Macron.
A partial lockdown in 38 different municipalities, including Copenhagen, Aarhus, Odense and parts of Zealand is to take effect in Denmark from Wednesday.
Elsewhere, South Korea’s daily new Covid-19 cases continued to hover near the 600-mark and the health minister warned the capital area is now a Covid-19 war zone.
The material has been provided by InstaForex Company – www.instaforex.com