Gold rises on renewed US stimulus hope, dollar falls | US & Canada News

Spot gold rose 0.37 percent to $ 1,910.56 an ounce at 3:37 p.m. New York time after falling 0.5 percent.

Gold rose on renewed optimism for a US preselection aid package while the dollar fell to a week-long low.

House spokeswoman Nancy Pelosi said a compromise stimulus bill is being written while awaiting an important call to Treasury Secretary Steven Mnuchin. Senate Majority Leader Mitch McConnell said his chamber would accept a comprehensive coronavirus package if an agreement was reached. The Bloomberg Dollar Spot Index was targeting its third decline in a row.

Pelosi said in an interview with Bloomberg Television that while there are areas where more work is needed to reach a compromise, she is pleased with the Trump administration’s latest position on coronavirus testing and detection. The two sides are also “within reach” when it comes to other health services, she said.

“The market will undoubtedly follow the talks in Washington very closely,” said Commerzbank analyst Daniel Briesemann in a note. “Gold could benefit in the event of a deal as the US dollar would probably be less in demand and likely lose value.”

Spot gold rose 0.37% to $ 1,910.56 an ounce at 3:37 p.m. New York time after falling 0.5%. Gold futures for December delivery on the Comex rose 0.2% and stood at $ 1,915.40.

The dollar index fell 0.4% to its lowest level since October 13th.

Spot silver rose 1.5%, while platinum and palladium rose.

Tuesday’s expiry may have short-term implications for gold, but “overall the market looks a bit stale, with the outcome and impact of the US election being an even bigger headache,” said Ole Hansen, head of commodities strategy at Saxo Bank A / S.

The price of the metal, held in a tight range this month, during intense talks in Washington with investors waiting for the election results to lead the way. A Democratic win should rally for gold in betting for a bigger stimulus, Phillip Futures Pte. said Tuesday in a note.

Talks between the UK and the European Union on a post-Brexit trade deal have fallen into a stalemate after a call between negotiators on the two sides ended without a breakthrough.