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PRECIOUS-Gold holds narrow range on caution over U.S. aid deal

Credit: REUTERS/BAZ RATNER

Gold prices held a tight range on Tuesday, clinging to the $1,900 an ounce support as caution prevailed over a potential U.S. coronavirus aid package.

* Gold investors awaiting new market drivers -analyst

* Dollar slips to one-week low

* Gold has risen nearly 26% this year

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds analyst comments, updates prices)

By Asha Sistla

Oct 20 (Reuters) - Gold prices held a tight range on Tuesday, clinging to the $1,900 an ounce support as caution prevailed over a potential U.S. coronavirus aid package.

Spot gold inched down 0.1% to $1,901.51 per ounce by 10:23 a.m. ET (1423 GMT). U.S. gold futures eased 0.4% to $1,904.70.

"Gold markets are in a wait-and-see mode in regards to the stimulus plan. It would appear that Republicans and Democrats are still at odds over certain topics within the language," said David Meger, director of metals trading at High Ridge Futures.

However, "there's still a fair amount of pessimism over whether the market believes that the two sides can come together to form some type of a deal."

U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" on the stimulus package, Pelosi's spokesman Drew Hammill said.

Gold, considered a hedge against inflation and currency debasement, has risen nearly 26% this year amid unprecedented global levels of stimulus during the pandemic.

The dollar index slipped 0.4% against its rivals, making gold less expensive for holders of other currencies.

"In the last few days, there hasn't been much volatility on bullion as investors are awaiting new market drivers," ActivTrades' chief analyst, Carlo Alberto De Casa, said in a note.

"Only a clear climb above $1,930 would give new strength to the price," he said, adding that, while the bull trend seems to have paused, "it is definitely not yet dead".

Investors are now waiting for the final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday.

Among other precious metals, silver rose 0.4% to $24.60 an ounce, platinum jumped 1.5% to $869.10 and palladium gained 1.7% to $2,382.21. (Reporting by Asha Sistla and Brijesh Patel in Bengaluru Editing by Marguerita Choy) ((Asha.Sistla@thomsonreuters.com; If within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2808; Reuters Messaging: Reuters Messaging: asha.sistla.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/ (UPDATE 7, PIX)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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