Gold fell after signs of progress in US stimulus talks aimed at reaching a deal ahead of the looming Presidential election.
Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are narrowing their differences on a stimulus deal, a Pelosi aide said Monday. US equity futures advanced and the dollar steadied as optimism about the package spurred risk appetite.
Gold has held in a narrow range during October amid the fraught Washington talks, a contentious US election season and uncertainty around the global economy’s recovery from the coronavirus pandemic.
“Long-term investors have shifted focus on what the November election outcome means for stimulus later, with a Democrat victory seen boosting gold’s sentiment with a very large stimulus package,” Phillip Futures Pte. wrote in an emailed note.
Spot gold fell 0.3% to $1 899.17/oz by 10:32 a.m. in Shanghai. Silver and palladium were little changed, while platinum fell.