Gold inches lower on caution over U.S. coronavirus aid
· Gold prices eased on Tuesday, trading in narrow a range, as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus package and the upcoming presidential election.
· Spot gold fell 0.2% to $1,901.16 per ounce by 0335 GMT. U.S. gold futures were down 0.3% at $1,905.20.
· “A lot of investors are on the sidelines and also in particular because the (U.S.) elections are coming up,” Brian Lan, managing director at GoldSilver Central said, adding that a stimulus will make prices test the higher end of the $1,882-$1,932 range.
· A massive stimulus from the Democrats could revive precious metals trading as they have been losing their mojo without additional stimulus, Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note.
· Investors now eye the final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday to see if it shifts the trajectory of the election.
· The dollar index was flat against its rivals, while Asian stocks slipped as investors adjusted risk exposure heading into the U.S. election.
· Gold Price News and Forecast: XAU/USD recovery remains limited below $1,900 area
Gold ticks up, dollar eases as market sentiment improves.
XAU/USD has regained most of the ground lost on Friday, as market sentiment improves, buoyed by US dollar weakness amid higher hopes of a fiscal stimulus agreement in the U.S.
Furthermore, the drug giant, Pfizer has reported that a COVID-19 vaccine might be ready by the end of the year, which has contributed to buoy the market mood further, increasing selling pressure for the safe-haven USD.
The precious metal, however, has failed to make a substantial breakup and remains trading sideways within previous days' levels. Upside moves have remained limited below $1.900/20 area, right at where the downward trendline resistance from mid-August highs lies.
The 4-hour chart shows XAU/USD unable to extend gains beyond $1,915/20 (Trendline resistance and 200-SMA). Above here, bullion might find resistance at $1,935 (October 11 high) before aiming towards $1,960 (September 18 high).
On the downside, initial support lies at $1,897 (October 16 low) and below here, $1880 (October 8, 14 lows) and $1,870 (October 7 low).
· Elsewhere, silver fell 0.1% to $24.47 per ounce, platinum was steady at $856.71 and palladium rose 0.1% to $2,345.43.
Reference: FXStreet, CNBC
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